Hi macrae1 and welcome to the forum.

You have done the right thing in looking for advice and help.

Can you tell me who you owe the debt to? Do you owe any money to Barclaycard or Nationwide? Reason I ask is under a Trust Deed they can sometimes be tricky to deal with.

In terms of your options it really depends on what payment per month you can afford to pay towards your debts after you have paid your living costs. It's key to go over a very through budget to work this out.

Based on £35,000 of debts you could be looking at a minimum payment around £200-£230 per month. This figure is only to give you an idea of the minimum payment creditors would be looking for. To confirm exactly how much you would pay we would need to go over a very thorough income and expenditure with you.

In terms of a Debt Arrangement Scheme let's say you can pay £200 per month to that. This plan would therefore take you 14 years to repay your debts.

If after a review of your budget all you could afford to pay per month is £100 per month then your only option might be Sequestration (Bankruptcy).

The positive thing is you have solutions to help you deal with your debts. It's just taking your time and making sure you pick the right one.

Creditors under all three options shouldn't have a problem with you paying for the vehicle so don't worry too much about that.

Best thing to do is reach out to a qualified Expert to discuss your situation in detail. Kevin or I the two Experts on the forum would be happy to give you some advice if you wanted.

HI,

Yeah around 8000 is with Barclay card.

Hi macrae1,

Thanks for sharing some more information.

This balance is too small for it to cause a problem for a Trust Deed of that's your preferred option. A creditor needs to have 1/3 or your total debt to create a problem if they reject the proposal.

What's your thoughts on your available options? Is there one which you prefer?

I believe the full break down is something like

loan 6000 BOS
Loan 8000 HSBC
Virgin cc - 1000
Barclaycard - 8000
HSBC cc 6000 odds
tesco bank around 2000
bank of scotland cc - 1800

Does it matter when these cards and loans were taken out? Also alot of the cards are interest free until a certain date does this matter?

Hi macrae1,

Thanks for sharing some more information.

This balance is too small for it to cause a problem for a Trust Deed of that's your preferred option. A creditor needs to have 1/3 or your total debt to create a problem if they reject the proposal.

What's your thoughts on your available options? Is there one which you prefer?

Hi macrae1

The first thing that really needs to be nailed down is what you can afford to pay, as this will really determine which options might be available and which might suit you best.

It may well be that all of the options may be open to you, but there are guidelines which have to be followed in terms of assessing your contribution towards any formal debt solution. Until that has been done then you can't really know what you are choosing between.

I'd encourage you to go through your budget with an expert first and then have a think about the options available. Please don't hesitate to get in touch if you'd like one of the experts here to do that for you.

HI,

I have been reading more into this since the post and I am unsure if debt arrangement scheme or trust deed would be a viable option Do you have some sort of guidelines to what expenses are allowed I have prepared a budget but feel like I have not covered everything?

Hi macrae1,

The only way you will know if either will be options is to reach out and actually speak with an Expert about your specific set of circumstances.

We do work with guidelines called the Common Financial Statement. You would be surprised the expenditure which is allowed.

In the space of a 15-20 minute phone call with an Expert we can confirm what expenses are allowed and what your options are. A good Expert will ensure that you have covered everything as if you qualify for a plan then the payment per month needs to be sustainable for the next couple of years and longer.

To expand on What David has said, the expenditure guidelines are issued under a license agreement which says that they are only for the use of the Money Adviser and cannot be shared publicly. That's why you would need to contact one of us experts, or an adviser from an advice agency, to go through your budget properly.

It may well be that both options should mention are viable, in which case it purely down to your own preference.

I do not mean the financial values I mean the category's themselves i.e I spend money on Tabacco and sports each month are these allowable expenses

The categories are, Essential; travel; phone; Housekeeping and other.

Expenditure on Tobacco and sports would fall within other so are allowable up to the maximum value of that category which is dependent on your individual circumstances.

Do trust deeds amend your tax code or send an earning order to your employer? I need to clarify the effects on job

Thank you
Y

They would not in and of themselves result in a tax code change. In the event you were self -employed with a liability to HMRC self assessment then a new tax code would be issued.

A trustee would not automatically seek to take payments from your employer but you should be aware that they have the power to seek payments direct in the event you were to miss two consecutive payments.

Thank you so my work will not be aware of the trust deed unless i make them aware