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(@skint4now)
New Member
Joined: 4 weeks ago
Posts: 2
Topic starter  

Evening everyone.

Just signed up as I have somehow allowed myself to overstretch my finances, I spoke with a company called PayPlan who ran through a budget and recommended I go through a process called a Trust Deed which to be honest was all new to me. I have never missed payments but in order to do so I have been using credit cards to pay for everyday things over the last year.

I have around 50k unsecured and my outgoings are now around 1k over my income of 3k. However having never been in this position before find this all a little daunting. I was hoping to ask a few simple questions too.

What happens if my salary changes? What if it goes down or up?

If for example I need to service my car and buy new tyres can I do overtime to cover the cost?

What happens if my budget changes? Say I start spending more on xyz or less on xyz?

Will my bank account be monitored and will they check what I spend my money on?

What happens to my current account as some of the debt is a credit card with my bank? They asked me to open a basic account elsewhere but I have a good credit rating so should I open a normal one instead?

Finally, should I be considering another route alternatively to this Trust Deed?

Apologies for the long post and I’m sure I’ll have more questions!

 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4250
 

Hi Skint4now.  Happy to help answer your questions, though I'd recommend you also ask them of your chosen Trust Deed provider as different firms may have slightly different approaches to some of these things.

Basically when you sign a Trust Deed you are agreeing to pay across as much as you can reasonably afford each month for the duration (usually 4 years).  If your salary goes up or down then you should notify your trustee and they would assess whether to change the amount you are required to pay each month accordingly.  This can get messy if your income goes up and down regularly though, so they might prefer to use an average instead in that case.

Likewise with your outgoings - any significant changes should be reported and there would be a review of your monthly contribution.  There should be an allowance in the initial agreed budget for things like car maintenance, so that you are able to put money aside to cover these things.  

A Trust Deed involves at least an annual review as to whether the amount being paid is still correct and most firms would request recent bank statements from you as part of this process in order to check for evidence of any significant changes.

Best stick with opening a basic bank account I would say, as some banks do not allow clients that enter an insolvency process to have anything else, so if you open a normal account you might just find they insist it is closed and a basic one opened instead.  

It's impossible to say whether another route other than  Trust Deed may be suitable for you without knowing your full circumstances.  We'd be happy to get the information we need from you and advise accordingly if you wish to contact us via the "contact me" button.  Generally speaking though, the other main alternatives are Bankruptcy or the Debt Arrangement Scheme.  Both may be suitable alternatives for you, but a lot will depend on whether you own anything of any significant value, as well as how much you are able to afford to pay towards your debts each month. 

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@skint4now)
New Member
Joined: 4 weeks ago
Posts: 2
Topic starter  

Thanks for the response Kevin.

I did see a post on here where someone said they completely regret their Trust Deed and that they couldn’t get any credit whatsoever, even long after it had finished.

This also got to me a little, although if I remember correctly their debt amount was significantly lower.

Is PayPlan used by members on here and are they considered a good Trustee?

This post was modified 4 weeks ago by Skint4now

   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4250
 

The Trust Deed would show on your credit file for 6 years in total.  After that it shouldn't cause too many issues with getting credit.  I couldn't answer your question about Payplan, but hopefully there are other members of the forum that may be able to give you the benefit of their experience with them.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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