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23/05/2012 11:23 am
i have been looking at setting up some sort of debt arrangement or trust deed. having accumulated around £46k debt and everyday slipping a little more in.
my problem is my wife has booked and paid for a holiday to (ironically) 'cheer me up' using her credit card.
i am worried that when my finances (and my wife's) are looked at, noticing this somewhat needless payout with credit will affect any decisions taken by advisors.
can anyone enlighten me? or is it the case that debt is debt, regardless of what it is? how deep into the debt do advisors look? in the past we've had credit card paying for things that whilst looking back now were silly, at the time, were something we 'simply couldnt do without'.
thanks in advance.
23/05/2012 11:33 am
Welcome to the trust deed forum scream.
A recent purchase of a luxury item may well not go down very well with the lender concerned if you soon afterwards tried to go into a trust deed or debt arrangement scheme. Aside from the moral angle here, it needs to be remembered that these voluntary schemes need creditor support (or at least an absence of objections).
Alternatively they might just make a commercial decision based upon the offer on the table.
Periodically the Accountant in Bankruptcy publishes the details of people that they consider behaved inappropriately in the run-up to becoming bankrupt (and for who consequences have later applied). I have seen examples in these lists of people that are viewed to have taken out credit they knew (or should have known) they couldn't repay in order to fund luxuries they could not otherwise afford.
I'm not casting a judgment on you or your wife, but I'd suggest some caution about the use of credit if you've already identified that you cannot repay your debts in the usual way. Funding basic living costs is one thing, funding a holiday or something similar is another.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
23/05/2012 2:53 pm
Hi Scream
Will you and your wife both be entering into a PTD or just yourself? If it is only you it makes no odds how your wife uses her credit.
My wife and I got married abroad, a lot of it paid for on credit (didn't realise we couldn't afford it until the minimum payments came rolling in). A few months later we entered into a PTD and had no issue with our creditor in that respect.
Regards,
PB
