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Topic starter
21/09/2013 3:10 pm
Hello all.
Advice needed please on our joint income,
Briefly I am 9 months into a trust deed and no idea
what to expect on annual review,
I have been asked to work extra overtime due to factors
and my contract states it's compulsory.
The extra overtime will amount to another 4k per annum
but we have nothing to show for this other than normal expenses.
When my trust deed begun my wife never had any credit cards
but she now owns 3 and 5k debt.
My annual income is 28k and her's 8k(part time)
If my wife's income is hopefully increased to 16k(full time) will this affect.
Although the terms of the deed were very fair, we find ourselves struggling from month to month.
21/09/2013 6:24 pm
Hi craig121598 and welcome.
One of the things we advise people to do is to get a written agreement before they sign their trust deed about what will happen with extra earnings like overtime.
If you haven't got that you're really in the hands of your trustee. They may want all of it, they may want a share of it. You'll need to ask them what their requirement is.
Your trustee may want to factor your wife's increased income into her share of your joint shared expenditure. This will also influence your future contribution if they do.
However, her share of your joint disposable income will be hers to keep. If she does get that increased amount of pay it should help her to manage her new debt commitments.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
23/09/2013 10:06 am
How long will you have to work this extra overtime for, craig? If it is over a long period then your trustee will probably look to do a recalculation of your monthly contribution rather than just seek extra amounts as and when.
The calculation would normally be as follows: your average monthy income minus your own monthly living costs and your share of the joint monthly living costs (pro-rata - so if you earn more then you shoulder a proportionately larger share of your joint bills).
So overall, you should certainly expect your TD contribution payments to rise if you are earning more every month. You would also expect your contributions to rise slightly if your wife starts earning more as she would then be expected to pay more of a share of the joint bills.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
23/09/2013 10:35 am
Hi Craig
Unfortunately calculating income and expenditure is not an exact science, although we all work within expenditure minimum and maximum figures set by creditors.
Where there is ongoing overtime, we will normally disregard the 1st 10% of net income and seek 50% of the remainder. ie if your normal net income was £1500 per month, then you can earn overtime of net £150 before we have any interest, then seek 50% of the balance over this.
If there is a change in household income, then it is likely that the contribution will rise. Obviously your wife will have her own costs to take into account, although she will also be expected to meet a % of the monthly household expenditure.
I hope this makes sense, I was kind of tying myself up in knots there more a moment!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
