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Scottish Trust Deed Forum
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28/05/2017 11:04 am
Hi, hoping for some advice. I am currently in a protected Trust Deed which is due to complete in December 2018, I have struggled to manage the payments and they were increased last year despite this. I was told by my trustee that if I didn't agree to the higher payment then the TD would fail and I would be back to square one. In order to cope I have ended up in debt again and now have numerous pay day loan companies chasing me for missed payments that I just cannot afford. I had opened some small accounts with catalogues and a credit card to build up a good pattern on my credit file and was managing this fine until the payments to my TD were increased - this was from £150 to £270 per month.
I am also moving house in July as the house I'm living in has been sold and my rent and council tax are going to increase - my TD company has agreed to reduce the payment back to £150 but I still have new debt that I cannot afford to repay at the rate being asked and I'm not sure what to do.
29/05/2017 10:36 am
How much debt are we talking about here, Bluesky? There are a few possibilities here:
1) Speak to your trustee and see if they will allow you to have a payment break in order to clear the other debts, with the missing payments being made up at the end.
2) Try to get the new creditors to agree to take very small token payments and freeze interest until your Trust Deed ends, at which point you start repaying them properly.
3) Consider going bankrupt instead
The last option would probably only be preferable if the new debts you have are considerable, given how far you are through your Trust deed already. You would basically be starting the 4-year period again but now including your new debts.
I'm not sure that your trustee is likely agree to option 1, so perhaps your best bet is to try and come to an agreement with the new creditors that is manageable until you can complete your Trust Deed.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
