Hi Adam,

Advisers commit not to sharing the expenditure guidelines that are used to assess contributions to statutory debt solutions in Scotland. Some people believe this to be unfair, but this is the current position.

What you should put down in each expenditure area is a budget that you believe that you can manage.

That doesn't just mean week to week (for example food) but also for less regular but inevitable expenditure (examples being vehicle servicing, clothing etc).

If the figures you put down in any particular section exceed the guidelines the firm will usually get back to you to discuss this.

I think it also worth saying that (at least in my own case) I was allowed expenditure for less "inevitable" items. These were listed on the form I was given to fill out.

Gym membership
Satellite television
House phone separate from mobile phone
Broadband
Miscellaneous expenses
Clothing allowance
Dry cleaning
School expenses
Life insurance
Other insurance

I took it to mean that a trust deed is not about forcing you to live in poverty.

It really isn't DFW. "Poverty" could be a clear sign that either an inappropriate budget had been set up or that a perfectly appropriate budget wasn't being well managed.

A restricted budget will exist for sure, but it should be set up to be manageable and reasonable.

Definitely a restricted but reasonable budget. I think for the OP there is maybe scope to claim for more than he/she thought was possible.

I think another point is that it's important to get it right from the start because it's difficult to change when everything has been agreed. And better to claim for more at the beginning and have to reduce it if asked to get it up and running than not to have claimed it at all.

Hi Adam,

As TDA has advised we as advisors work with something called the Common Financial Statement which is a set of maximum spending guideline figures. These figures are not available to the wider general public. The thought process behind this is that if clients are away of the figures they could suggest that their spending is at the maximum allowed.

A good advisor should work through a very thorough income and expenditure with you to ensure that everything has been covered and if you have exceeded the spending maximum guidelines then the advisor will make you aware of this and the options available.

Are you in a Trust Deed at the moment Adam?

Yes I am in a trust deed just now but a few things have changed like my job my travel and expenses also my oldest daughter lives with me now too which has incurred major costs

Hi Adam,

The best thing to do is to give your Trustee a call and explain to them that you have had a change in circumstances and that you want to work through a new income and expenditure with them to reassess your payments.

Prior to this I would sit down and really think about your budget and what you are spending on absolutely everything and write this down. That way when you come to speak with you Trustee you aren’t struggling to remember everything and can give them a list.

Thanks for all your advise people