Welcome to the forum LetsGo55.

A trust deed will run for a minimum of four years usually. Are you being offered a four year arrangement?

I'm not familiar with the firm you mention, though that in itself doesn't mean anything in particular.

Thanks for getting back to me. Yes 4 years - Ideally want to get rid of the debt over 2 years. Sooner the better!

Good Afternoon LetsGo55

The 4 year period is currently set out in Legislation so could only be shortened by way of paying your debts in full together with statutory interest and all relevant Trustee costs.

I have no experience or knowledge of McKenzie Finance - other than a quick google search which seems to indicate that they are a re-mortgage/insurance broker as opposed to an Insolvency Practitioners. Is that definitely the correct name LetsGo55

It says this on their website Kevin

The Money Advice Service is an impartial service set up by the Government to help people manage their money. To find out more about free debt advice, visit moneyadviceservice.org.uk

Licensed by the Information Commissioner's Office Under the Data Protection Act. Registration Number: ZA443849. Registered Company Number SC602753.

McKenzie Finance Limited is as an Appointed Representative of Debt Saving Solutions who are fully authorised and regulated by the Financial Conduct Authority. FCA registered number 669760.

© 2018 McKenzie Finance Ltd. All Rights Reserved. Call 0141 380 0588 For Further Information.

How much can you afford to pay each month LetsGo55?

How much do you owe in total?

£27,000 and worked out I can repay £125 per month. The advisor Paul went through my income and expenditure. Rent, food and things like that.

Always good to get a comparative quote though. So the 4 years is fixed then?

Hi LetsGo55.

Four years is the statutory minimum, unless you become in a position to fully repay your debts (and other costs) sooner than this.

It's the same with bankruptcy - four years of payments (if you're in a position to be able to afford this in the view of the trustee).

It would take 18 years at £125 per month to pay down a £27,000 debt at £125 per month.

Who are your creditors and how much is each owed? Depending upon who they are, it might make a difference to the likelihood of them allowing your trust deed to become protected.

To clear your £27,000 of debts within 2 years you would need to pay £1,125 per month. That’s £1,000 per month more then the company have worked out for you. If you could afford a payment at this level then a Debt Arrangement Scheme could be an option for you.

Take your time, do a little research and even consider a second opinion. Make sure whatever you sign up to you can afford and are happy with and also ideally meet the person / company who will handle everything for you in person.

Final thing is make sure you receive everything in writing regarding the plan, the payment per month and how any assets you have will be dealt with.