Hello miss hardup,

When looking at your financial statement all household income and expenditure would be taken into account. As such this would include income from a student loan (but connected student expenses should also be taken into account as well).

Accounts with a zero balance need not be included in a Trust Deed.
The catalogue company would probably only find out about the Trust Deed if they had reason to run another credit check on you, or perhaps if any of your other debts were to companies connected to the catalogue company.

Regarding student loans, these need to be paid back eventually once you earn over a certain amount. Therefore we would not normally consider this as income in a trust deed - it is simply a form of credit that you may or may not choose to take to help with your studies.

If there is no debt owed to the catalogue company then there it would not count as a creditor in the trust deed so you may well be able to keep an account with them. However, you would need to be careful about building up a debt with them as there could be affordability issues further down the line.

thankyou very much for your advice
Im clear on the catalogue issue, however, im a bit confused on the student loan

TDA, you are saying it is included as an income, but Kevin, you seem to be saying it is not, as it needs to be paid off when I earn an income over 15k (which of course I want to do after my degree)and its my choice whether I take it or not.
I would prefer to keep my mthly loan payments and not use it as an income. This way I dont have to start listing expenditure as a student. seems a lot simpler.

To make things a bit more confusing..sorry...is a bursary treated differently? I may get a form of bursary on top of my loan this year to help with costs. Im presuming a bursary is income? as it doesnt need to be paid back?

Sorry for all the questions but im sitting down working out realistic income and expenditure figures so im all set when I contact you to start a trust deed (hopefully!)

thanks
miss hardup

Hi miss hardup,

Kevin is personally involved with setting up Trust Deeds so you can assume that his comments represent how his his firm would handle things if you were a client.

I'm not sure on the bursary question... hopefully Kevin can confirm...

A bursary would be considered as income miss hardup.

To try and clarify the student loans scenario - the point I was trying to convey is that there is no problem in you taking out student loans in order to help with the costs of studying. If a student has to borrow in order to top up their income to meet their living costs then it follows that there shouldn't normally be any spare income to pay towards a trust deed. However, I guess that if the funds weren't needed to cover living/studying costs then they could be viewed as spare money that a trustee could seek from you, so under this kind of scenario would it actually be worthwhile taking on the student loan debt?
Not sure if that is any clearer!

Thanks for that - makes sense.
The reason I would continue taking a student loan is the cost of books, travel, ink, stationary (yes! expensive stuff week in and week out!)etc.
I would be on a tight budget with a trust deed but I think to start adding to these as an expenditure would bring out affordability for a trust deed right down. The monthly loan payments would mean I could afford all that without it impacting on the food money put aside or anything else like that.
The bursary, I can see the point that its an income. definately. It would top up my part time wage so I have no problem with that at all. Understandable.
Do I need to have everything listed before contacting to discuss the option of a trust deed?
I have a problem with my expenditure right now with regards to huge nursery fees. They bring my affordability right down and that is why im hanging around trying to sort all of that out first. My nursery bill is nearly ?ú800 a month, I get help from child tax credits but still have to pay out quite a bit. Im in the process of hunting around for cheaper childcare or cutting down hours and feel like im delaying starting up a trust deed.
its all very scary stuff as with the nursery bill im left with an unrealistic amount to live on for 3 years.
Am I better continuing looking around to find cheaper childcare so I can afford a trust deed before making contact with you?
regards
miss hardup

Hi miss hardup,

I think the best thing to do at the moment would be to take advice on the options open to you. This would normally follow an advisor coming to an understanding of your current circumstances.

If you do decide to take direct advice it would be best to have as much detail as possible available even if you haven't managed to track down every detail.

That process will help you to understand your current position and the options open to you today.

It would also provide a starting point to look at the options that would be available if it were possible and realistic for there to be changes in your current income/expenditure.

thanks TDA
There could be options Im missing although I have looked quite a bit in depth at them, thats off my own back and not from a professional person in that area.Im trying to tie up a couple of loose ends however that I think will be important in any of the choices that might be available to us and hopefully sort things out by next week at the latest as I need to get moving with all of this.
another question for you:
What happens if myself or my husband changed jobs, hours etc whilst in a trust deed with regards to payments. Im trying to find out if once you are in a trust deed as long as the original monthly payments dont go down (im aware they can go up depending on extra income)is it usually okay to do this? If the affordability can still be seen to be there?

The reason im asking is my husband is waiting on an offer for a 3-5 year full time course and was originally going to reject it if we went down the trust deed route. But if we are bringing in the same amount of income every month due to the fact our expenditure goes down and our income is topped up would this be acceptable?

His employer has already offered him reduced hours to fit in with this if he chooses to go ahead, which at the moment he is too scared to do because of our situation, understandably. Would this not be taken very well in a trust deed situation as he had reduced his working hours through his own choice?

would appreciate some advice
thankyou
miss hardup

Hello miss hardup,

I cannot see any issue with this provided that the Trust Deed payment can be maintained.

Yes - as long as by choosing to go down this route it is not adversely affecting what creditors can expect to receive then there would be no problem.

thankyou both
will be in touch as think we have sorted out the fees for nursery so have at least a chance now of being able to pay a trust deed
kind regards
miss hardup

Hi there
strange question but hope you can answer
how much are you allowed to put aside for personal things such as haircuts/clothes/xmas..things like that?
we have lived in debt so long that I honestly havent ever had a budget for it but know its needed.
I just have absolutely no clue if your meant to put aside for this or what on earth would be considered okay?
sorry for being so vague but im just so apprehensive about the leap im about to take considering a trust deed and trying to be realistic with my expendture figures over 3 years....we will definately need haircuts and clothes in that space of time!
help??!! 🙁
miss hardup

Hi Miss Hardup,
My Trustee advised me how much for clothes, haircuts, food and normal running expenses, take that leap if you are sure. My trust deed has become protected TODAY, I keep going on about it but it is a good feeling, to be honest it's got rid of a lot of stress. Your Trustee should have some figures regarding family expenses.
Hope this Helps.

thankyou Person
Im so so pleased you got everything sorted out.
well done!
its a bit like celebrating the lottery with a ticket that gets you a life back???
I hope to be in the same position soon as this is the most stressful thing I have ever went through
good luck
miss hardup

Perston! not Person!!
apologies
miss hardup