Hi richlaw666.

For what purpose might you use it?

a freezer. do the credit card companys complain if you use it just before you sign one as ive used it for months for food as and petrol as we paying that much on other stuffand until trust deed set up ill still need to use it. also if i know ill be signing one soon do i cancel all payments to loan companys now

Hi richlaw666.

If you are financially overcommitted to the point that you rely on credit cards for food and petrol I think it would be wise to get advice and a solution in place ASAP.

How do you feel about buying a freezer and knowing you will not pay for it?

I'd suggest following the advice of any solution provider you choose and commit to on when to cease paying creditors directly..

Given that the freezer is hardly a luxury item I'd be tempted to make the purchase(assuming it's to replace a broken item). It's not like using your cards for a Caribbean cruise!!!

I wouldn't go making purchases just for the sake of it.

Paul

Hi Paul.

There may be ramifications associated with buying an expensive item while knowing you're about to sign a trust deed. The creditor involved and the trustee might have a view on that. In serious cases the law might have a view as well.

So where is the line drawn? We had to use our credit cards to pay for food and fuel to get to work,both essentials but technically after our 1st visit to CAB we probably knew it wouldnt all be getting paid back(not that it meant we bought dearer groceries,quite the opposite!!).

Perhaps the better option would be for richlaw to cease paying creditors and use the money saved to fund the freezer,but only if you are sure that a trust deed is the way forward richlaw.

It sounds like you are in the same boat I was,using credit for day to day living so do speak to someone about your options.

Paul

Hi Paul.

It's not a clear line.

Often people pay their debts at the start of the month and then have insufficient money left for essentials like petrol and food afterwards. You don't often hear very strong objections when day-to-day expenses are paid for on credit in such circumstances.

Buying a single pricey item seems to go beyond that.

Speaking to the proposed trustee for guidance may be a good idea.

I wasn't taking the freezer to be particularly pricey!! But get your point.

Paul

A fair point.

I suppose it need not necessarily be especially expensive.

I just thought that if you were to start a trust deed and announce right away you need £200 for a new freezer it wouldn't go down well!! Not saying pre trust deed you refurnish your house!!

Paul

Curry's cheapest new undercounter freezer = £150

Or buy from cheap ads for around £50 cash maybe less if you search.

Surely it would be seen as a neccessity for the home (and for budgeting for food etc as it can save you money longer term). ?

Deliberate maxing of credit prior to an arrangement you know you are taking out is at the least questionable and at the worst leaving you at risk of scuppering your chances ? I would save as best I could for a few weeks and buy second hand for £30 to £50 quid. Give it a good clean and at the end of the day it does the job :)Needs must and all that...good luck anyways

As plasticdaft said, you should maybe consider prioritising the purchase of the freezer from what funds you have, and if that means that you cannot pay towards your debts then so be it. The net effect is the same but you cannot be accused of taking credit that you knew you couldn't repay.

I would agree with Kevin. It would be better to use the funds that you would have used for making loan payments- it doesn't"t look as bad for you. If youdo use the card just before signing a trust deed, the creator could take it further if they consider it to be fraud i.e. you had no intention of ever paying for the freeze.itrarely happens, but it could! It also depends on whether you are 100% sure this is the route you are going to talke.