Hi Danielle6363 and welcome to the forum.

If the car comes into your possession in the future, you will have acquired an asset.

That doesn't mean that your trustee will want to take the car from you though.

What do you think the car is worth now?

In this situation we would normally review the car's value once the finance is fully repaid. If it is worth £3000 or less at that point then it would be ignored. Any value in excess of £3000 would have to be gathered in - normally by extra payments to the Trust Deed or from a third party.

Other firms may look a this slightly differently, but they should always be clear as to what you should expect prior to signing up. Did you ask the question to them?

Hi
Thank you both for getting back to me right now my car is worth about £6000 but I still have another 31 months of payments so may be a lot less at the end. I haven’t asked the company yet but I am going to. I haven’t signed anything yet so still have time to ask.

Thank you both for taking the time to answer

Hi Danielle6363,

Welcome to the forum.

Well done on reaching out for help and advice to deal with the debts. Often it’s the hardest thing to do.

In terms of your situation, how much debt do you have and have the company confirmed what your payment will be per month?

As Kevin has advised if your car is free of finance in 31 months we would do the same, look at what the value is then and anything above £3,000 this would need to be paid over.

Also if the finance stops then you will have that extra money per month which your Trustee could consider taking for the remaining period of the 4 years. Again you want to check this. They should review your income and expenditure at this point to see if things have changed before increasing the payment.

It’s also a good idea to seek a second opinion on your options just to be sure you are happy with everything. All of the above is important and it’s things that the advisor should have discussed on the call. It shouldn’t be up to you to seek answers to these questions. I along with the other experts on the forum would be happy to help with a second opinion. Make sure the company you are speaking with is the company that will actually handle your Trust Deed. Again we hear of people being passed onto another company and things changing.

As long as you take your time, look at all of your options and even seek a second opinion and then move forward with a plan things should work out fine. The positive is that you have solutions to help you with the debts.