Welcome to the forum Fresh start 2017.

The situation is fairly clear in respect of your debts - they would all have to be included (and are included even if they weren't disclosed) if you enter a trust deed or become bankrupt. You're not able to prioritize one unsecured debt over the others.

Are you able to provide more information about exactly who issues this credit card and the name of the product?

My initial view is that it's pretty unlikely that they'd be able to contact your employer if you were in default but I can appreciate your concern and would wish to look into things a little more before offering any definite advice on this part of the situation.

It may well be the case that David or Kevin have dealt with the same credit provider used by other MOD employees in the past and can share some practical experience about this possible issue.

Thanks TDA

It's issued by Close Brothers and is a Visa Credit Card.

I'm not sure of all the ins and outs with the Company and have presumed that the service was solely for those in the MOD community which would possibly make it simpler for them to deal with - having the card may carry an obligation that they can notify my employer and access my salary?

Hi Fresh Start 2017 and welcome to the forum.

I haven't encountered any problems with a credit card and Close Brothers. Similar circumstances in that I've dealt with a number of police officers that have had a loan from the police credit union coming straight from their salary. Once they sign a TD we arrange for this to be stopped and it has no impact on their job.

I don't think there will be an issue but I would like to look into this a little further with you. I think this will just be an initiative from your employer and and Close Brothers and I don't think it will be linked to your job in any way.

Can you tell us who else you own money to? Do you owe any money to Barclaycard and if so how much?

Also, do you own any assets such as a house or car?

You have done the right thing reaching out for help and advice. The positive is that you have solutions available to help you become debt free. It's just working out which one best suits you.

There are quite a few "affinity programs" out there where suppliers link up with organisations to offer their services. Employers and trade unions would be two common examples. I've seen football clubs offering credit cards also.

It's a win-win I suppose. The employer provides their employees with the benefit of a good product, and the supplier gets marketing access to a large number of people.

These arrangements are usually made directly between the provider and their customers once they go ahead though.

I'd agree with the others - I think it is unlikely that there would be comeback for your employment because of this card having to be included. They certainly wouldn't be entitled to take money directly from your wages if you enter into a Trust Deed.

Close Brothers are a large financial services provider and I'd be pretty sure that any tie-up with MOD personnel is nothing more than just another market niche for them. I would be surprised if they treated you any differently from anyone else who has credit with them.

Thanks all for your advice with this - it's helped put my mind at rest.

David - the breakdown is as follows -

Barclaycard - £7270
Close Bros - £3331
Halifax - £6914
MBNA 1 - £5983
MBNA 2 - £2889
M&S - £3681
Santander overdraft - £2200
Total - £32,288

My car is worth £1000 or less.
My flat was bought 15 years ago through Northern Rock with a 125% Mortgage - £22,500 for the flat plus an unsecured loan for £6000. I also have a secured loan for £16,500 which i took out 9 years ago. The current value of the flat should be @ £50,000

Hi Fresh Start 2017,

Thanks for sharing a little more information about your circumstances. All of those creditors I deal with on a regular basis.

If you still have the unsecured loan then this must be taken into consideration as a debt in a plan.

How much is currently outstanding on your secured mortgage?

When it comes to a Trust Deed we need to establish the equity in your property to ensure that its not too much as this would make a Trust Deed tricky depending on the level of equity. We do this by obtaining a valuation of your house (free of charge to you) but you would also need to speak with your mortgage provider to obtain settlement figures for your mortgage and secured loan. Once we knew the level of equity we could confirm if a TD is a suitable option or not.

How much do you think you could pay per month to a plan?

The best thing to do is reach out to an Expert to discuss your circumstances in more detail. Kevin or I the Experts on the forum would be happy to help you with this.

Thanks David - I'll get back to you soonest and also arrange to discuss in more detail.

Hi Fresh Start 2017,

Your welcome. Hopefully you are feeling a little more reassured about things now and what options you have.

Give your mortgage and secured loan provider a call and ask for a settlement figure for both of them. Make sure you ask for this to be posted out to you in writing also as we need written confirmation of the balance.

Have a good think about an income and expenditure and what your bills are as when you speak with a Expert this is what we will need to go over with you to see how much you can afford to pay per month to a plan.

If you have debt with the bank which you have your bank account with or an overdraft then you will need to open up a new bank account. Other things that we would need from you are your last 3 months payslips and bank statements.

If you can make a start on the above then when we come to speak with you we are already organised.

Working out what you can afford to pay each month is important, as this will determine what options might be available to you. Remember that the unsecured part of your mortgage would have to be included in any formal debt solution, so your monthly payment to Northern Rock would reduce accordingly.

As David says, quantifying the equity in your property is important too. If the equity is fairly sizeable then it will complicate matters a little as it counts as an asset, the value of which may need to be gathered in for the benefit of creditors in a Trust Deed.

It may be possible to extend the term of a Trust Deed instead in order that the equity is covered by the extra payments instead - or even exclude the equity in your home altogether. First things first though - if you can get redemption figures then the options can be assessed more clearly.

Thanks both for the extra information.

The request will be sent to Northern Rock tomorrow. I'm pretty much organised with the rest of the paperwork / new bank account and am currently working on my budget using the StepChange guidance for my expenditure.

As soon as I hear from NR I'll get in touch to arrange an appointment.

Hi Fresh Start 2017,

Sounds like your pretty organised which is good and helps.

Normally when requesting a settlement figure it's just a 5 minute phone call to the lender and you have this verbally but like I said you also want them to post it out in writing.

If you need any help with the budget or are unsure of some things just let Kevin or I know. When your doing it make sure you are as thorough as possible as if you enter into a plan it's for the next 4 years or longer potentially depending on what plan you choose so it has to be accurate and thorough.

Will do David - I'll finish it tonight and then look over it at the weekend with a fresh pair of eyes. I'm sure there be some queries with it so have no doubt that I'll be in touch.

That's a good idea.

Also, don't feel the need to cut back too much on your spending. Whenever I speak with someone they always think that that spending needs to me the minimum and they are not allowed things like Sky/Virgin or a gym membership etc. Just be realistic about things and what it actually costs you to live per month.

When we go over it all with you it could be the case that it's all acceptable spending and you can afford a suitable payment per month.

On the other hand it could be the case that it shows you may not have enough funds left over to pay a suitable payment on a Trust Deed. If that's the case you can then look at your spending to see if you could make some adjustments and tighten your belt to afford suitable payment.

Don't worry we will keep you right!