Hi Kris97 and welcome.

Might it be possible to get a car on HP or a lease?

You'll want to be thoughtful about cost however. The additional expenditure might make a difference to the debt options that are then open to you.

Thanks for your reply.

I should be able to get HP on a car. Despite my level of debt I've never been refused credit and my 'credit expert' records all show satisfactory.

I wasn't sure if this would be permitted given I would be arranging it so soon to me applying for a trust deed. I assumed that the finance company would be considered a creditor and immediately demand that the car would be returned.

There's a company on the net that would allow me to pay less than £100 a month on a car I've seen over 5 years.

Is this worth considering?

Hi Kris97.

With HP you'd have to keep paying the finance during the trust deed or risk losing the car.

It's therefore quite different to an unsecured loan. Taking out a loan you knew you wouldn't repay has a number of issues attached to it, as you are obviously already aware.

Hi Kris97

I think you need to look at HP or a PCP deal or even lease. It would be best to avoid any kind of finance which may end up as a claim in the Trust Deed.

Mark

I had my last car on a 3 year PCP deal and there was just shy of one year left to run when I entered into a Trust Deed. The good thing is you're allowed to keep this on during your trust deed and it's not considered an asset as the car doesn't belong to you. BUT you won't be able to renew your car deal as your credit record will be completely goosed for 6 years. It's very likely you will have to hand the car back at the end of the PCP deal and walk away with nothing to show for it as you won't be able to get a loan to clear the balloon payment (unless family loan you the money of course AFTER you're discharged). We did manage to sell the car to a dealer but we were left with very little after the settlement figure was paid.

agree with pammy,bad thing is you wont have a car for work like me and have to use local transport which probabaly means some difficulty in getting to an from work as i am about to find out soon good news you might save a bit more money ,in my case loan money will all go on train fares an buses but i might save on petrol money any money left over after selling car back will have to goto trustee wont get much from i estimate about a tenner(might if im allowed to keep it bang it on the lottery???)

I have to admit, I would stick to a Hire Purchase agreement, then at least you own the car at the end, rather than a PCP-where you need a balloon payment at the end , or hand the car back. The HP will continue to be paid throughout your trust deed, so it won't be a problem. Try to keep the car value reasonable so the trustee or creditors can't query it. Anything less than £3000 is exempt if reasonably required, but remember this car has to last you for several years, so make a wise choice.