Hello Hardtimes.

I cannot see how the credit reference agencies could be aware of a trust deed until it is signed and advertised in the Edinburgh Gazette.

A corporate credit card should pose no issue, your employer will be credit checked rather than you.

Thanks for reassuring me. I'm just worried because I've been advised to change banks ASAP and I have opened a new account but I'm now strongly in the mind that I'm not going to enter into the trust deed. I feel I want to pay off my debts and dig myself out of this mire. With the fees associated with the trust deed, I think it's unfair on my creditors. They're lucky if they get £3000 between them!

I haven't missed any payments and my credit score ironically is fine. I did however get turned down for a credit card about 3-months back (in order to do a balance transfer). Would this hinder my ability to obtain a consolidation loan? Not sure if anyone has any advice for me?

Thanks

Hi again.

All lenders have their own acceptance criteria, and a credit check is only one part of it. I guess you'll only find out by applying.

If you cannot consolidate (affordably), cannot manage the current contractual repayments without getting further into debt, and want to pay your creditors back in full, the debt arrangement scheme would be a potential option to consider.

Firstly, trust deed assistant is spot on regarding your credit rating and the corporate credit card issue (I have looked into this myself for a client).

It sounds like you have options, hardtimes, and you are quite right to take your time and weigh up what is most important to you. A trust deed is quicker as it has the advantage of potentially a significant proportion of your debts being written off, however it is a formal insolvency procedure so does not suit everybody. The Debt Arrangement Scheme is an excellent option for those wishing to pay as much as possible back to their creditors and who don't mind paying over a longer period of time, however you are still defaulting on your contractual agreements and therefore your credit rating is still affected.

Best idea is to ask away about anything that worries you about any of your options, and then choose whatever suits you best. there is no right or wrong answer.