Hi sjm750

There no minimum or maximum as such. Your DI is normally your income less essential expenditure. However there are other factors involved ie level of debt, assets, who your creditors are etc.

With debts in the region of £32k, we would need to look at all ofthe above to see if the Trust Deed was workable and the best option.

Mark

Welcome to the forum sjm750.

Just to add to Mark's comments, you've obviously looked into this quite closely for yourself.

How much do you think you could afford to pay towards your debts (your disposable income) after your essential and reasonable expenditure has been accounted for?

Yeah I've looked at it quite closely. I've no assets or equity. I have unsecured debts of 32k, with 4 creditors. The largest being 20k. A loan and credit card with the same company . My income is 1200 a month take home pay . and after all reasonable living expenses have been deducted . It leaves me with £200 D I....I was just wondering what the general feel and consensus is. If that would be acceptable! Or I would have to find alternative income?

Hi sjm750.

For a trust deed, it does appear to be quite tight over 36 months with a monthly payment of £200. However if you were to choose a trust deed firm with fees at the lower end of the scale I think it's well worth looking into further.

Sometimes trust deeds might be extended slightly, say to 42 months for example, to make them viable. Obviosuly this does require the prior agreement of the person signing the trust deed.

Will be interesting to see how our experts view the situation.

Hi SJM750

It looks a bit tight, but as TDA says, it depends on achieving a minimum dividend and with a reduced fee, it could be workable.

Mark

Ok thanks for the advice.

Both of you are saying it's Tight. I can understand you don't want to say a figure as every case is different. If I was to raise my DI to say 250-300 by doing a few shifts in my friends bar at night! Do you think I would be more in the ball park for acceptance then and give myself a better chance of being accepted. I appreciate your answers are general guidance only , but much appreciated. Thanks

Hi sjm750.

I'd suggest working through the disposable income with a professional adviser at this stage.

Within the industry there are some guidelines that set ranges for "reasonable expenditure" in certain areas. This may mean that your calculations are proven to be correct (in trust deed terms) or they may need some adjustment one way or the other. You'll then know where you stand.

Once you know where you stand it will be easier to plan accordingly in terms of whether there really is any benefit to you in working those extra hours.

By way of reassurance the extra income you refer to in your last post would deal with the issue of it being a little tight. It's just that the work may not be necessary depending upon the outcome of the reassessment of your numbers.

Hi sjm750

Its always better to go through the inc/expense and see what is realistic. If you were able to maintain the £250/£300 then I think the Trust Deed may well be workable with the figures quoted.

Regards

Mark