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Scottish Trust Deed Forum
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Topic starter
04/11/2009 9:48 am
My son is 16 months into his trust deed and has made all payments to date and on time. A credit card was missed from the trust deed as it had no balance at the time, since then the card has been used for emergencies.
The card is with Barclaycard, he has recently received notification that his account has been suspended due to a balance on a Mastercard account and full payment of the balance is required for both accounts.
Has my son broken any rules relating to the trust deed by using the Barclaycard??
04/11/2009 11:05 am
Hi ayrshire lady and welcome to the Trust Deed forum,
What is the balance on the card left out of the Trust Deed at the moment?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
04/11/2009 11:29 am
It's currently sitting at ?ú850 and he is paying off ?ú100 a month on it
04/11/2009 12:24 pm
I'm sure the experts will confirm but I'm pretty sure that for the duration of a Trust Deed, you're not supposed to take out credit in excess of ?ú250.
04/11/2009 12:48 pm
There's conflicting information available on this subject so I'll leave it to Kevin or Mark to confirm the position.
Most people entering Trust Deeds will not make further use of credit.
Allowances should be made in the calculation of monthly payment to cover things like car repairs etc that don't come up weekly or monthly.
Another point is that there is no provision for credit repayments within the income/expenditure analysis which determines the Trust Deed monthly payment. It will therefore be very difficult for anyone in a Trust Deed to fund credit repayments on top of their normal reasonable living expenses and Trust Deed payment.
Hopefully we can get a confirmed answer soon....
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
04/11/2009 2:58 pm
Hi folks
Technically your son has done nothing wrong ayrshirelady. There is no legal restriction on taking out further credit whilst in a trust deed, though it is something we advise people not to do as the trust deed contributions should be using up any spare disposable income available and payments to new creditors would not be something we could allow for in someone's budget. In other words it is merely an issue of affordability.
The ?ú250 limit related to sequestrations only. It has actually been increased to ?ú500 recently and the rule is that any person applying for credit above this amount must advise the lender of their status as an undischarged bankrupt. As far as I am aware, this does not apply to trust deeds though
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
04/11/2009 4:30 pm
Thank you Kevin.
This is the type of issue where it is so valuable to have experts who are actually involved day-to-day in setting up and managing Trust Deeds.
I did an internet search and found about 20 different answers on various websites!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
05/11/2009 10:35 am
Thank you all very much for your assistance. Very much appreciated
06/11/2009 12:13 pm
Glad to be of service! Makes me feel useful...
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
