Advise on Trust Dee...
 
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Advise on Trust Deed..very confused!!

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(@nicnac2012)
New Member
Joined: 14 years ago
Posts: 3
Topic starter  

Hi There,

Im new to the forum and looking for some advise on TD's please.

Im currently on a DMP and have been for the last 2 years (4 years left) I have been called constantly from advisors from several TD companies and Im very confused now as to what the best option for me actually is. I currently pay ยฃ307pm, which is affordable but thr TD's are saying they can put the payment down to 190pm, which in itself is a very attractive option but Im a homeowner and worried about the consequences on a TD making me release equity or forcing me to change my car etc...Am i being extreme? Will my home, car be protected??
I have read in other forums that these are happening so you can appreicate my concern.
The TD company also avised that after my DMP has ended that my creditors WILL come after me for all the frozen interest over the 6 years...is this true?
I have also been told that after the DMP my credit will be null until at least 6 years, which is fair enough, but the TD said that after the 4 years with them my credit will be ok?? Surley this isnt true?

Lots of questions folks so hopefully someone can help me[:)]


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi nicnac2012

You are correct to ask questions, especially cold calling companies.

The contribution in the trust deed is generally based on your income less expenditure. If you are receiving contribution quotes without a full income and expenditure, then please be very wary of the firm.

The house and cars will be looked at and ( again) generally if your car is worth ยฃ3k or less the its not part of the trust deed. The property is subject to a trust deed valuation less what's outstanding on your mortgage.

My advice is to do a face to face meeting with a trust deed firm NOT a middleman company, look at all the options and have the position re house, car and contribution fully agreed before doing anything.

Hope this helps

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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(@pammy1969)
Estimable Member
Joined: 14 years ago
Posts: 102
 

Welcome to the foum NicNac!

I'm not an expert but I'd be wary of TD companies telling you they can "do it cheaper" - that's not what it's about. If they haven't discussed your income and expenditure, they can't possibly predict what you'll need to pay. Ilm sure one of the lovely forumites will be along soon with expert advice!

Pam


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

Nicnac,welcome from me too. How much equity is there in your property?

If you started a trust deed tomorrow your credit file will be marred by it for 6 years.

Sounds like the companies calling you have been spouting guff.

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi NicNac2012 and welcome.

You have been told a load of rubbish about your DMP.

Good to see that the coldcallers haven't got away with it in your case.

Having said that, even if you decide that a trust deed isn't for you, the Debt Arrangement Scheme would give you a lot more security and certainty than a DMP.

Interesting to note that the end-result of these coldcalling liars/incompetents must be an insolvency practitioner buying the lead or work done on a possible case from them.
I wonder which trust deed firms are happy to participate in this malpractice?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@nicnac2012)
New Member
Joined: 14 years ago
Posts: 3
Topic starter  

Thanks Mark and Pam for the advise!! I will be avoiding the companies that are calling!!

Mark on your response you advised that the TD will take into the agreement by home and car, all these calling companies advised that this would not happen so Im really glad that you responded with your advise![8D]

Paul I do have equity in my home so Im thinking a TD isnt the best option for me...


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Hi Nicnac2012

Any decent firm will run through all options and let you decide whats best. Its hard to avoid the sales pitch.

Valuation need to be done in all properties, that said the valuation will normally be lower than estate agents valuations as it needs to factor in costs etc. This is then balanced against your outstanding mortgage to see if there is any equity. If there is then you need to decide how this will be dealt with. If not, that should be the end of it.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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(@nicnac2012)
New Member
Joined: 14 years ago
Posts: 3
Topic starter  

Will entering into a DAS prevent creditors from persuing me when the agreement ends for any interest that has been frozen over the years?

Thanks again everyone for the advise!!


   
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Mark McFadyen
(@mark-mcfadyen)
Famed Member
Joined: 16 years ago
Posts: 4798
 

Yes DAS protects against legal action, interest and charges on all debts. Far safer than the DMP.

Mark

Mark is not posting regularly in the Trust-deed.co.uk forum.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi NicNac2012.

You may have spotted it already, but there is more about DAS here:

http://www.trust-deed.co.uk/debtarrangementscheme.php

Almost always a better option than a DMP for the reasons already mentioned.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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