Hi Carol,

How much can you afford to pay to your debts each month?

Whilst there is no lower limit on the level of debt required for a trust deed, it is harder to justify to creditors that a trust deed is suitable at this kind of level of debt - but not impossible...

Hi Kevin, I currently pay ?ú100 a month could probably afford ?ú130, it is the thought of being in the debt management plan for 12 years that is scaring me didnt realise it woulod be that long to be honest I wasnt fully informed of what I was signing up for, I want to be able to provide more security for my 2 kids however concerned that this is never going to happen now.

Hi Carolck1

I'm really sorry to hear that you have had a tough time of it over the last year or so.

A Trust Deed may or may not work for you, there may well be better options available to you.

Like Kevin asks, we really need to know how much you could afford to pay to your debts before we can point you in the right direction.

Julie

Hi Julie, I could probably afford approx ?ú130 per month.

The debt management company must be charging about ?ú40pm presumably,which is severely lenghtening your repayment term. If you went for a debt management plan or DAS through a free advice agency then your debts would be cleared within 7.5 yrs at ?ú100pm, or 5.7 yrs at ?ú130pm - not quite so bad, though still long enough that an insolvency option may be suitable.

I think sequestration might be the most suitable option, rather than a trust deed, given the amount of your debts and your available disposable income, though you would be wise to get advice from a money adviser or insolvency professional first.

Thanks Kevin, is that not the same as bankcruptcy and make me unable to eventually purchase a property in the future.

Carol

Hi Carolck1

I agree with Kevin, I would suggest sequestration also, however please make sure that you get advice first.

Julie

Thank you so much for your advice, I am not really sure what a sequestration is though could you advise.
Carol

It is the same as bankruptcy, Carol, and will affect your credit rating for 6 years, though a trust deed would too (and I imagine it will already be adversely affected already anyway).

I believe that the main factors in being able to get a mortgage these days are whether you have a deposit and whether the mortgage is affordable. Certainly a credit check is part of the process, but is only likely to be a major hinderance if the adverse information is quite recent. At least the debts will be wiped more quickly in a bankruptcy and you would hopefully be in a position to start saving for a deposit more quickly.

Ok that is great thank you very much for your advice and help.