Cheers Paul! you all seem to be so helpful. I suppose I'm just feeling the usual way you do once you face up to your problems: embarassed and certainly ashamed... Thanks all.

Yes but facing up to them is where you must start. I felt better just talking to a stranger in our local Citizens advice bureau!! Amazingly uplifting.

Paul

Hi Toby.

The fees/costs are likely to be a bit higher than mentioned by plasticdaft; we're possibly talking about two trust deeds rather than one here.

Last questions...

Do you and your partner both work full-time?

Do you earn a similar amount each, or is does one of you earn much more than the other? Please give us a little detail if you can.

Hi TDA: My partner earns around 900 pm and I'm only earning around 800. Partner works 30 hours a week and so do I. Thank you.

quote:

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Originally posted by Trust Deed Assistant

Hi Toby.

The fees/costs are likely to be a bit higher than mentioned by plasticdaft; we're possibly talking about two trust deeds rather than one here.

Last questions...

Do you and your partner both work full-time?

Do you earn a similar amount each, or is does one of you earn much more than the other? Please give us a little detail if you can.

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OK. You're earning similar amounts so for the sake of an example Toby we'll say that the £350 you jointly have to repay debts is split equally between you. In this example you are therefore paying £175 each every month into your own trust deeds.

Your Trustee has to be able to expect that they can offer at least 10% of what is owed to each of your creditors after they have drawn their fees and costs from your contributions.

10% of your debts is £2400.
10% of your partners debts is £1300.

If you each paid £175 per month into a trust deed the total each of you would pay over 36 months (not 48 months) is £6300.

That means that there would be up to £3900 to cover fees/costs for you (£6300 minus £2400) and up to £5000 to cover fees/costs for your partner.

That seems like more than enough to me, and therefore I cannot see any reason why you would want to do a 48 month trust deed when it appears 36 months would/could/should work out for everyone if the fees for the trust deed firm are reasonable.

It would be good if Mark, Shona, or Kevin could comment on how their firms would look at this scenario in terms of the proposed length of a trust deed...

Hi TDA

Comments are spot on. I suspect the time period is more fee related than best advice related.

Mark

This is (I feel) very good news. I would much rather be going down this route rather than the one I've been offered. thank you so much for advice: will get in touch if you let me know who I should get in touch with? really appreciate this....

quote:

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Originally posted by Trust Deed Assistant

OK. You're earning similar amounts so for the sake of an example Toby we'll say that the £350 you jointly have to repay debts is split equally between you. In this example you are therefore paying £175 each every month into your own trust deeds.

Your Trustee has to be able to expect that they can offer at least 10% of what is owed to each of your creditors after they have drawn their fees and costs from your contributions.

10% of your debts is £2400.
10% of your partners debts is £1300.

If you each paid £175 per month into a trust deed the total each of you would pay over 36 months (not 48 months) is £6300.

That means that there would be up to £3900 to cover fees/costs for you (£6300 minus £2400) and up to £5000 to cover fees/costs for your partner.

That seems like more than enough to me, and therefore I cannot see any reason why you would want to do a 48 month trust deed when it appears 36 months would/could/should work out for everyone if the fees for the trust deed firm are reasonable.

It would be good if Mark, Shona, or Kevin could comment on how their firms would look at this scenario in terms of the proposed length of a trust deed...

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Hi Toby.

If I were you I'd get in touch with another trust deed firm and work out with them how trust deeds would work for you.

Three firms that we feel very positively about (and which you'll find many positive comments around the forum from people that have used them) are those represented here by Mark, Kevin and Shona. You can contact them if you wish via the buttons in their forum signatures which will take you to a contact form. I reckon there would be others where you could do three year trust deeds rather than four year ones as well, but it seems you may have found a comparatively expensive one up to now.

Thank you so much TDA: It's nice to know there are people who actually understand this process! I will get in touch with someone now.
regards
T.

Just for your info Toby the wife and I are just finishing a trust deed with RSM Tenon and have nothing but good stuff to say about them. Any problems we have had were dealt with in a fast an efficient way(car blowing up was a major hassle which tenon dealt with very easily),our reviews have always been pain free,even when we were asking for increases to our food and fuel budgets.

An Email to my case manager during the working day is always replied to that day(not an auto response but a real answer!).

The other firms represented on here seem to be a cut above others I have found,but whoever you decide to go with make sure you are comfortable with the budget agreed,and ensure that any you know how any equity(I know you said theres none),that is gained during the trust deed period will be dealt with.

If there are any other questions,no matter how silly you think they are,please do ask.

Its a life changing decision to deal with your debts,we had been struggling for years with over 70k of debt,I used to pay a minimum on a credit card then go and use the balance for petrol or food!!

Paul

Hi Toby

Looking at the figures, I have to agree with Mark that 4 years must be just so the firm can take a bigger fee. At £350 per month, you should both be able to run Trust Deeds over 3 years. Any longer than that is usually for people who are buying out equity. As you have no property, I would not opt for 4 years....3 years is long enough!!

Hi Toby, just like you i received a call from a company suggesting that i sign into a TD, they too wanted an initial payment before my TD was to start. It turned out to be a broker (middle man) who were going to pass me over to an actual TD firm which also had high fees and over 48 months. Lucky for me i found this site and immediatly signed up with Mark from this site. Also you should always meet your TD firm in person,even at home, which was in my case with Mark.Ask as many questions to them as you can, their there to help and on your side. You will not be asked to sign straight away.Dont be ashamed nor embarassed, we were all there,there is always a solution around debt.

Hi Toby.

I'd agree with the analysis from the other experts/trust deed assistant. However, I think it is worth mentioning that whilst the majority of creditors do go by the above criteria, not all do.

For example, barclaycard/egg/clydesdale bank/cooperative bank and others work by different criteria and it may be that if these creditors represent enough of your debt then a slightly longer period may be necessary. It does still boil down to the level of trustees fees/outlays though so shopping around is a sensible idea (especially if you are being asked for an upfront fee on top).

A big thank you to all who have been kind enough to correspond offering advice (REALLY GREAT advice!)I have taken the first steps into what I am sure will be the proper road to go down. Will keep in touch. Regards
T.

Make sure you do keep in touch Toby,even if it is just to say hello,but we will all be here to help out in any way we can.

Paul