Welcome to the forum CDC123.

Your trustee is required to collect your full disposable income. Any increased bills or reasonable expenses should be taken into account, but the reality unfortunately is that you're unlikely to benefit significantly from this pay increase until your trust deed has ended.

The answer to your second question depends upon what your trustee requires. If you're paying an increased sum towards a fixed amount of vehicle equity after the four years has ended, that increased payment should enable the trust deed to end sooner. You might prefer that.

Morning CDC123

Your Trustee will be open to negotiation re the car payments however as TDA advises, an increased payment will reduce the length of term allowing you to be discharged earlier than planned.

P

Thanks for the replies.

So I still pay the agreed total sum for the equity in the car? That's good, So was worried my payments would increase but they would still take them for the full term.

C

That should be correct CDC123.

For the usual four year period you're required to pay over your disposable income, which can increase over time.

After that period is completed your payment is to cover the agreed value of the asset. I'd imagine the 16 months was estimated based upon your contribution level at the start of the trust deed. If your capacity to pay increases then that agreed equity value can be cleared sooner.

Perfect, thanks very much.