Hi Tompie,

It's so easily done isn't it? I get worried when I see people on here say that they want to get their credit files up to date and take out more credit to establish a good history by getting credit card etc.

I would maybe say a Debt arrangement scheme may be better for you, I'm no expert but take a look at the step change website, put in all your info and it will let you know what the best course of action is to take. Vanquis wouldn't freeze my interest but it's worth a call to them.

I will let you know what happened to me....

I had a trust deed in my late 20's, I got up to my eyes in debt with credit cards, loans, catalogues etc. I completed 4 years and all was fine. I didn't take out any credit until the 6 years had passed.

I then decided that I would take out a vanquis credit card - the limit was only £250 which I could keep on top of. Then I thought I would get a loan for a car as at that point I had a baby and a toddler. Then vanquis kept raising my limit on my credit card, I was starting to get into a bit of trouble but thought I would be able to manage. I then started planning my wedding (husband paid for it) but I wanted lots of extras which I used my overdraft for. My debt was spiraling out of control at that point with more credit cards to pay of other debt and next/very catalogues. What a mess I was in!

I really didn't want a trust deed again but had to own up to my husband to the mess I got myself into. He was not best pleased but glad I had told him. I was so embarrased to get another TD but I am now away to make my 5th payment and so glad I sought help.

Just wanted to let others know that it can easily happen again, so please be careful when you finish your TD's to not let what happend to me, happen to you! Good luck guys x

Hi tompie1980,

I'm sorry to hear about your marriage breakdown and as a result you have found yourself in financial difficulty again. Believe it or not it's more common than you would think and for a whole range of different reasons. I have a client at the moment who is still in a Trust Deed with our firm (entered it in 2009) but has signed another Trust Deed with a different firm for new debt of approx £13,000.

In terms of your debts, I calculate these to be £7,500. If you are going to pay £100 per month to these and the interest and charges are frozen for the duration it would take 75 months or 6 years. Obviously if you could afford to pay more then you would clear the balance quicker. The difficult thing is that creditors will only agree to freeze the interest for so long.

Trust Deed's changed in November 2013 and are now over a minimum of a 4 year period.

As Mercy2604 said, a Debt Arrangement Scheme could be another option as this would freeze the interest and charges and allow you to repay the debt back in full.

You do have options available to help you deal with your debts it's just working through these with an advisor and picking the one which you feel best suits you.

Hi

Really hope it all works out for you Tompie.

David mentioned he has a client who has set up a second trust deed whilst not yet discharged from a previous one. What happens in that situation? I would have thought up could only sign over your affairs to a single IP? How does it work with 2? Does your original IP rank alongside all other creditors when the new IP is presenting the second trust deed to new creditors? It's got me curious. Thanks.

Hi Thinkingofthefuture,

A lot of the additional debts which the client accumulated after they signed the first Trust Deed with us were from creditors which were included into their first Trust Deed. The creditors had allowed the client to continue to borrow even although they knew the client was in a Trust Deed.

The client has completed all of their obligations to us and we have finally resolved the PPI issues and as a result we are now in the process of closing the case.

The client didn't tell the new company anything about their first Trust Deed and when I called the company they were totalling unaware.

Any assets that would be available would fall within the first Trust Deed and Trustee to deal with. This type of scenario is a little more common in a Sequestration rather than a Trust Deed. It's the first time it's happened in one of my cases.

I have contacted Vanquis and they will put me on a 3 month debt program where I pay £60 a month just to cover the interest and then will talk again in 3 months times.
Its a joke that someone in my circumstances was even allowed a credit card with £3000 on it. I so wish i hadnt bothered and I'd actually took the time to look just how much the interest actually was.