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Scottish Trust Deed Forum
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Topic starter
01/08/2013 2:55 pm
Final payment for my TD went today. After 3 years of being careful and getting back on track I should be really happy. But I'm not.
I had debt on credit cards and an unpaid tax bill and after months of harassing phone calls, letters and someone on my doorstep I realise it was all unmanageable, I wasn't earning enough to clear it all, I couldn't keep on top of it and felt terrible so entered into a trust deed so I could reclaim my life and pay back the debts as much as I could.
Now, three years later and after doing the right thing to pay back what was owed I still feel that I'm no better off. I was told today that it would take another 6 years to get a mortgage. 6 years! I've been living in what has felt like a massive lie for 3 years to clear my debts and now I've got to keep it up for another 6 years, my poor husband knows about it but I've kept it from my family who all want to help us get a home but because of my TD which I thought was the right thing to do, I basically feel no better off. I should be opening champagne but instead I feel like crying.
01/08/2013 2:59 pm
Everyone seems to be on 3 year plans. Why on earth is mine 4 years?
I've been conned and the con is escalating after paying up for a year.
Topic starter
01/08/2013 3:05 pm
Sorry to hear about your situation. My TD managers have been wonderful and no problems. I told them about when I got a small pay increase and was given a one month break in payments so I had extra for my honeymoon. The process has been great, no hassles and felt very supported.
Now though I feel like even though I've jumped this huge hurdle, banks and the like don't see what an achievement that is and I'm actually not much better off, or at least for another 6 years...:( I don't name my TD managers at all, they were great. I wish there was more support and understanding for ex-tdeeders to get them back on track with life instead of keeping them written off....
01/08/2013 3:09 pm
Hi Tiredmama007.
Congratulations on having made the final payment on your trust deed.
The information that you've been given about mortgages doesn't seem especially accurate or useful. We've forum members that have obtained mortgages much sooner than that.
Have a read of the following link https://www.trust-deed.co.uk/repair-your-credit-rating.html which details some things that you may be able to focus on to improve your mortgage chances in the future.
Well done again on completing your obligations to the trust deed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
01/08/2013 3:12 pm
Thank you, just read another happy poster saying they got a mortgage a year after completing their TD so I guess we will just have to wait another year. Life on hold just a bit longer then 🙁
01/08/2013 3:12 pm
Hi Untrustdeed.
The blunt answer as to why your trust deed is 4 years is because that's what you agreed to.
Sometimes trust deeds need to be longer than 3 years to meet creditor expectations about the dividend that they'll receive, sometimes to fund higher than average fees on the part of the trustee, and sometimes for a combination of both reasons.
Trust deeds lasting longer than 3 years aren't unusual.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
02/08/2013 10:59 am
My wife's TD is for 3 years but my TD is for 3.5 years. The reason I have a longer term is the expectation payment required by the creditors would have put allot of pressure on us monthly. The increase to 3.5 brought the payment down by almost £50 monthly. Yes it means the TD fees will be higher etc but this is not really a big concern to me. My biggest motivator is to make sure my monthly payment is manageable.
In addition to that when my wife's payments have stopped (and there has been no changes to the TD in term times etc) we intend using the surplus payments to bring my TD to a close quicker.
Half way already!
02/08/2013 11:21 am
quote:
Originally posted by colski
In addition to that when my wife's payments have stopped (and there has been no changes to the TD in term times etc) we intend using the surplus payments to bring my TD to a close quicker.
If you offer them more money they're not going to shorten the trust deed, are they?
02/08/2013 11:22 am
As far as I'm aware the credit position is 6 years, which means three years after the trust deed finishes it should be off your credit file.
I think obtaining a mortgage is difficult even without the Trust Deed, however as TDA says, a few posts have suggested that its not impossible and I suppose a lot will depend on income, deposit etc.
Re creditors, we work pretty much to a set criteria with creditors, so know what it will take to get them through. Sometimes its a case of juggling with the numbers and either reducing fees to reach the minimum dividend or by an extention to the time period.
mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
02/08/2013 11:48 am
You've entered into an agreement Untrustdeed where you have agreed to make a minimum payment for a set period of time. If you can increase your payments per month this means that your creditors will receive more of their money back and less will be written off.
Unfortunately by paying more per month doesn't necessarily mean it will sorter the Trust Deed timescale.
David is not currently posting in the Trust-Deed.co.uk forum
02/08/2013 11:51 am
I guess in terms of Untrustdeed/colski/David's point it depends upon whose money it is.
If you can afford to pay more then you'll be asked to, normally without any change to the term.
If someone else steps in and offers their money (perhaps colski's wife after she is discharged) the trustee may agree to a reduced term in lieu of the extra payment.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
