It's better to change banks mate.

Your overdraft account will be frozen when you start your trust deed, anything that goes into it will be lost to pay off the overdraft.

Even if you open another account, without an overdraft, it will be linked to the other one, so may be frozen as well. I worked in a bank when I started my deed, but even before that I saw people's accounts frozen because all their accounts with one bank are linked - freeze on one affects the rest.

Hi dell00

Can I ask if anything changed in 3 years to now suggest a TD.

In answer to your question, your existing account will be a creditor if you proceed with a Trust Deed, although why you are still listening to the same company suprises me.

Mark

i was with one company and they changed to dealing with just company debts or something like that. so the new comppany they passed my details to called me to say that the better option for me would be a trust deed, because my debts are over 50000 and i was paying a minimal amount i would be paying dmp forever and the td makes me see that there is light at the end of the tunnel. the only thing is i'm just getting by on my dmp but if i decide to go with the td over 4 years my payments go up from 230 a month to 430 which is going to be very difficult hence why i don't have 500 to pay my overdraft. thanks

like i said the reason i don't want my bank account to change is because i get paid with cheque from my work and it clears the same day because my work have the same bank and branch that i bank with. so all my direct debits like my mortgage get paid on time and if i have to switch banks my cheque would have to lie for 5 /7 working days and i'm scared all my direct debits will be late and loads of charges and things. if however i borrow 500 from my family to pay the overdraft off before the td starts will i still be able to keep my account. (hope this all makes sense to you) thanks again for your help.

Hello dell00.

It does sound like it will be a lot more convenient to keep your existing current account if you proceed with a trust deed.

Paying off your overdraft may well help that to happen if you can find a way to get this done.

Please remember that being in a trust deed will mean that you fall outside of the acceptance criteria for some bank accounts. For example, because your bank account affords you with an overdraft you may find that your bank aren't prepared to let you keep the account if they become aware that you're in a trust deed.

One way to minimise that risk, while staying with the same bank, would be to ensure that you downgrade your account to the basic current account offered by your existing bank (without any credit facilities).

I notice that the company you're speaking with are suggesting a four year trust deed. If you can afford to pay £430 per month and have debts of £50000 I really cannot see any reason why you should not be able to start a trust deed with the normal three year term.

There are circumstances where slightly longer trust deeds are a good idea, however three years is quite long enough if it's achievable. I'd suggest that you widen the number of sources that you're talking to trust deeds about.

i asked and they said because one of my debt alone is 37000 they have to take it to insolvancy practioner and would wnt it paid over 4 years. it a joint loan me and my husband took out. i dont really know much about td but when i spoke to them they sounded understanding and made me feel like as i said there's light at the end of the tunnel. how do i go about looking at other sources. and what happens if one month i can't afford/miss or are late with a td payment. thanks again

You would certainly need the agreement of that particular creditor in order for the trust deed to become protected, dell00, but I am not aware of any creditors that would routinely ask for a 4-year period based on the figures you say. Who is it that you owe the £37k to?

You can approach any insolvency practitioner firm and they will no doubt be happy to give you a second opinion, no strings attached. The three firms represented on this forum would all do this for you if you wish.

1 month's missed or late payment isn't a big issue. It would have to be caught up at some point but that is all. Are you worried that you cannot afford £430 pm dell00?

Hi again dell00.

There are three trust deed providers that we are comfortable recommending that are represented on this site by Mark, Shona and Kevin. If you read around the forum you'll find plenty of threads where visitors have made positive comments about other trust deed providers that they have used personally as well.

Speaking to a couple of companies can be helpful. A trust deed is a major commitment (and expense) so some caution in selecting the right assistance makes sense. Maybe the way to think about it is that if you were going to make a major purchase of any other service or a product you'd probably get a few quotes or visit a few shops so that you could make an educated comparison between what is on offer to you before going ahead.

Regarding missing a payment it really depends upon the circumstances. For example, if it was the case that there was a major unexpected expense (expensive car repairs for example where you need the car to get to work) your trust deed provider might allow you to skip a payment and then add it on at the end of the agreed term. Likewise if there was a temporary income loss that was out of your control (for example redundancy) you'd likely be given some breathing space to re-establish your ability to make the payments.

like i said in my last post my monthly payments are going up by £200 ive tried to work out figures i think i'll manage (just) but it is a big jump.

sorry the big loan is rbs.

here's a list of my debt
rbs 34577 joint
tesco card 3682 my name
provident 557 my name
mbna (bt) 4518 husband
capital 1 1057 my name

studio 587 my name
ck edrupt 659 my name
moorcroft 785 husband
i also have a mortgage and a big secured loan.

Is the £430pm between both you and your husband dell00? As the big debt is joint he would need to enter into some kind of arrangement too otherwise he would still be liable. In this case the £430 you were quoted seems a lot more like it - as it will be covering 2 trust deeds.

As trust deed assistant says, there is no need to rush into anything and it is never a bad idea to approach someone for a second opinion. The main thing I would be worried about from reading in between the lines is that you might struggle to afford these payments. Based on the above numbers i'd say it should be possible to bring the payments down a little and still get the agreement of your creditors.

Hi dell00

RBS are never usually a problem as as stated previously, they have never used a 4 year minimum as a guide in Trust deeds. It may be that the person you spoke with is trying to get the minimum dividend to get the Trust deed(s) protected.

Mark

i've just been on the phone to them and they say i'm paying 10p in the £1 and cant make the payments any lower does this sound about right. yess the £430 is between me and my husband.