{"id":676,"date":"2022-11-24T09:28:46","date_gmt":"2022-11-24T09:28:46","guid":{"rendered":"https:\/\/trust-deed.co.uk\/?p=676"},"modified":"2026-02-12T12:01:58","modified_gmt":"2026-02-12T12:01:58","slug":"savings-and-trust-deeds-in-scotland","status":"publish","type":"post","link":"https:\/\/mull.xthost.co.uk\/trustdeed\/savings-and-trust-deeds-in-scotland\/","title":{"rendered":"Saving Money &amp; Scottish Trust Deeds"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">It\u2019s sensible to save money. We face one-off costs we didn\u2019t expect. <\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Our situation can change fast and without warning. Saved money protects us when these events occur.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Having cash savings reduces our need to use credit. You will have little access to credit during a trust deed. Saving becomes your financial buffer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Saving During Your Trust Deed<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your&nbsp;<a href=\"\/trust-deed-expenditure-guidelines\">trust deed budget<\/a>&nbsp;can include an allowance for saving. It\u2019s known as a contingency allowance. It\u2019s there to help you manage irregular costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This allowance may be limited to 10% of your disposable income. The actual amount will be subject to a cap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll have a budget for other irregular expenses. Vehicle servicing is an example.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We suggest you save these allowances monthly. Pay them into a separate bank or savings account. You\u2019ll have access to cash when the need arises. It will protect you and your family.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Modest saving should create no issue for your trustee. If you save a lot of money, the situation might change. It might appear you can afford to pay more into your&nbsp;trust deed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Saving After Your Trust Deed Has Ended<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once discharged from your trust deed, you\u2019ll have more spare money. You should save some of this extra money. We suggest that you open a separate savings account. Create a regular standing order that pays into the savings account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Saving money improves your financial stability. You\u2019ll be more resilient if something goes wrong. You\u2019ll reduce the need for credit to manage one-off costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Much Should You Save After A Trust Deed?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Financial advisers suggest building up an&nbsp;<a href=\"https:\/\/www.moneyadviceservice.org.uk\/en\/articles\/emergency-savings-how-much-is-enough\" target=\"_blank\" rel=\"noreferrer noopener\">emergency cash savings fund<\/a>. Save enough to cover your bills and expenses for 3 to 6 months. If something goes wrong you\u2019ll have more time to fix it. You\u2019ll suffer less stress and worry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where should you save? Joining a credit union might be a good idea. You\u2019ll build access to affordable credit if it\u2019s needed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Savings Held At The Start Of A Trust Deed<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you sign a trust deed, you hand control of your assets to your trustee. If you have savings, this money \u201cvests\u201d in your trustee. It\u2019s an asset that you\u2019ll pay over. It will be used to repay your creditors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This doesn\u2019t apply to a modest balance in your current account. It\u2019s understood you have bills and expenses to pay.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s sensible to save money. We face one-off costs we didn\u2019t expect. Our situation can change fast and without warning. Saved money protects us when these events occur. Having cash savings reduces our need to use credit. You will have little access to credit during a trust deed. Saving becomes your financial buffer. Saving During [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-676","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/posts\/676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/comments?post=676"}],"version-history":[{"count":1,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/posts\/676\/revisions"}],"predecessor-version":[{"id":1393,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/posts\/676\/revisions\/1393"}],"wp:attachment":[{"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/media?parent=676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/categories?post=676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mull.xthost.co.uk\/trustdeed\/wp-json\/wp\/v2\/tags?post=676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}