Hi, you dont need to put anything down for a TD, infact, in a way, the less you have the better. You have to take into account essential payments, house, council tax etc. Then follow the guides on what allowances you can have. Take this total off your income and the rest goes to the td. If you have little outgoings with your high salary, u might be better with a debt repayment plan.

Hi White Cafu

Skintally is correct. The Trust Deed is based on a single monthly payment which is affordable. There should be no up front fees or payments.

Mark

Welcome to the forum White Cafu.

In addition to the points made by SkintAlly and Mark I wonder if you could give us a little extra information?

How much do you think you could afford to pay towards your debts (via a trust deed or another option) each month?

This is worked out by deducting your essential expenditure (include everything including provision for things you buy occasionally like clothes) from your income (but excluding your debt repayments).

That will guide to us being able to confirm whether a trust deed is going to be available to you and also, more importantly, whether there are other options that might work better for you given your current circumstances.

Hi White Cafu

I would agree with TDA & Mark that no upfront fees should be paid. A Trust Deed can be financed through contribution only without any problem. As said, depending on your income, a Trust Deed pay be for you, but there may be other options depending on the level of your disposable income. All options available should be covered by the company you approach. Then you decide which is the best route for you.

Thanks for your responses. I take home roughly £1550 p.m. My expenses are-
£400 rent
£60 car insurance
£50 Phone
£40 gym membership
£40 petrol

One thing, I am also paying off a personal loan from my Gran at £265 a month, I will still need to pay her this as she uses it for living costs. Would a trust deed allow me to include that as part of my expenditure? Ideally I'd like to pay £200-£300 towards the trust deed

I'm afraid it wouldn't be possible to allow this payment as part of your outgoings whilst in a trust deed, as these are funds that should really be shared out between all creditors.

How much debt is left to your gran? Do you think your gran may be able to let you reduce your payments at least? If so then it may be that you could still manage to pay her out of the allowance you are permitted for your living costs. £265pm would seem a lot to find though.

Yes I understand, that's fair enough. It's £10k I'm due her, I'm sure she wouldn't mind me reducing it, I guess as you say I'd have to see what I could manage from my allowance

Hi White Cofu

As Kevin says, you can pay your Gran from the money you are lrft with for 'extras', but is not going to be as much as you are currently paying her. If she can reduce your payments, then once your Trust Deed is finished you will be able to increase the amount you pay to her as you will have no other debts. Hopefully it will not increase the term of her loan by too much.

OK thanks, I guess I'll have to see how much I have left over and work something out with her. Another thing I was wondering. I have a guarantor loan, if they are contacted is it likely they would chase the guarantor for payment of the loan?

Hello White Cafu.

If you go into a trust deed and there is a guarantor for one of your loans I'm pretty certain they'll look to the guarantor for repayment at some point not that long afterwards.

Yea that's not what I'd hoped for. As I said above I have a personal loan which I'll be looking to pay off to my gran with any left over money I have, my friend acted as guarantor on the loan so I can't put him in a mess with it. So it looks like I'll still have a lot of payments to make even with a TD. Wouldn't want to fall into trouble while on it. Depressing, maybe it is not the best option for me

Hi White Cafu

You do have several issues that need to be addressed, so I would suggest you contact someone for a meeting. There are various options that may be open to you, it's just a matter of finding the right one for you.