Hi overwhelmed.

Stigma is a difficult one to define. I guess that really comes down to your view of the situation. I think perhaps other factors are more important, especially making sure that your financial situation is under control in a way you are certain meets your needs.

If there is little or no equity in a home a trust deed may well be more straightforward than if a significant amount of equity existed. Lots of trust deed firms, including those that write here, are happy to do a valuation in advance to help you to make an informed decision.

A trust deed is a formal insolvency. It therefore should be considered to be a very serious step to take. However it is still an option that thousands of people each year consider to be appropriate for their circumstances. It will have a very substantial effect on your credit rating and will remain visible on your credit file for six years.

The debt arrangement scheme is also a serious step, but it isn't a formal insolvency and might therefore be considered less damaging to your credit record and rating. However, depending upon your debt and contribution level, it could last many years. In that case the effect on your credit rating might be longer than would have been the case for other options.

DAS and trust deed registers are both publicly available. It's unlikely that anyone will stumble into either by accident though.

How do you feel about a 7.5 year arrangement? Some people would prefer to pay back their debts in full even if it takes a while. Others would prefer to move on from their debts as soon as possible. It's really a personal decision on this question rather than there being any right or wrong answer.

Hi overwhelmed

Firstly I wish companies would stop using the phrase 'you are eligible' and 'you qualify' as though you have won through to the next round of a competition. It's sales speak and nothing more.

The main difference from the information provided will be time period for both the solution and the credit file.

I think the property is a key issue and if there is little or no equity, then again it comes down to the above, as you need to ensure the property is safe.

I think you are doing the right thing in checking out all options and asking questions.

Mark

Hi TDA a As we had only looked at DAS we were expecting to pay over the longer period and to be honest feel like we got ourselves into this mess and would prefer to pay back what we owe..I was surprised that even if it takes us the 7.5years to pay that the negative effect on your credit file lasts a further 6 years, over 13 years this didn't seem right and thought maybe they had got it wrong last night, makes it seem never endingalthough currently our debt seems never ending, so we need to think seriously about our next step we will be speaking to someone else on Monday and will ask all the same questions and will be interesting to see if we get all the same answers!!

Thanks for the reassurance Mark, we obviously feel very vulnerable and a bit stupid for letting things go so far it's good to be able to ask these questions and get the responses from the forum members & experts.
As I said we were expecting to pay over the longer period just didn't realise that a further 6 years would be added to the credit file.

Hi overwhelmed

No problem at all. Despite what many firms tell you, both the Trust Deed and the DAS proposal is a major step and you need to ensure that you have carried out all of the research to determine what is best for you and no one else.

The market is fully of commission based 'sellers' who will guide you towards what is financially beneficial to them. So stick to your guns and ask so many questions that their ears bleed!

Mark

Hello overwhelmed.

After 7.5 years the negative reporting on your credit file will probably be limited. There are things you can do to build up your credit rating again as well.

I'm therefore not sure it would be right to assume that a debt arrangement scheme will destoy your chances of access to credit for more than thirteen years.