Hi Guys,
Sorry for starting a new thread but my original one seemed to get hijacked.
One quick question.
Let's say that I apply for and get a TD and I make the monthly payments successfully.
I am then offered a new job and a pay rise - how would this effect my TD?
Hi Bitesized.
Sometimes threads here do take twists and turns, so no harm in starting a new one.
Your trust deed payment should always be based upon affordability. Therefore, if you got a significant pay increase, you could expect a significant increase in your trust deed contribution.
It's a bit different with more modest "cost of living" pay increases. They'll often be cancelled out by the general steady increase in living costs through inflation.
Hi Bitesized,
I think it's a good idea starting a new thread as the other one went off in a different direction.
The payment you agree at the start of the Trust Deed is the minimum payment you can be expected to pay for the duration. If your circumstances stay the same your payment will remain the same.
Should your circumstances change and you receive an increase in income or a reduction in income then your contributions can be changed accordingly. It should always be based on affordability.
Any increase in payment to the Trust Deed doesn't mean that the timescale or the balance is paid off quicker, it means that creditors receive more of their money back.
I guess the way to look at it is if you weren't in a Trust Deed and received a pay increase you would probably try and increase your payments to your debts.
David is not currently posting in the Trust-Deed.co.uk forum
Hi Bitesized
It's one of those areas which can seem unfair. If your income increases, then the Trustee can re review the level of contribution and increase this. If your income drops, they can re review and reduce the contribution, however extend the period to make up for the balance!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.