Hi bellamacv1970 and welcome to the forum.

Well done on taking the hardest step and reaching out for help and advice. You will find plenty of guidance, help and support on the forum not just from us Experts but also people who have been in a similar situation to you both.

The positive thing to try and remember is that even although it might not feel like it right now you will have solutions available to help you become debt free.

In terms of your available options this will depend on a number of factors. Things like the level of your equity, your budget and how much you can afford to pay per month and also who you owe money to can determine what your options are. A good knowledgable Expert should work through all of this with you to see what your options are.

When it comes to a Trust Deed the equity in your house needs to be taken into consideration. An Expert such as Kevin or I would organise a valuation of your house (at no cost to you) and you would obtain a settlement figure on your mortgage and any secured loans. Often people over value their house so you might not actually have the amount of equity you think. If it turns out that you have a small amount of equity then a Trust Deed might be an option. If your equity is a lot, perhaps around how much you think then a Trust Deed might not be an option and could be more complicated.

If you did proceed with a Trust Deed you need to make sure that absolutely everything is confirmed in writing regarding your payments, the timescale and how any equity in your house will be managed.

A Debt Arrangement Scheme works on the basis that it doesn't take into consideration any equity or any assets as it's purely based on your ability to repay all of the debt. There isn't s minimum or maximum timescale for this plan but ideally it shouldn't last longer than 10 years. If you were to enter into this plan then for example paying back £60,000 over 10 years would be £500 per month if you used the free sector such as a citizens advice or local council.

When it comes to exploring your options you should speak with a number of advisors as things can vary from firm to firm. Ask the advisor if they will be your main point of contact for the full duration or if they will pass you to a different firm.

Ask a lot of questions and make sure you are happy and confident with the answers you receive. Also, there isn't any need to rush into anything. If you take your time you will make the right decision that best suits you both.

Can you tell us who you owe the majority of your debt to and also if you both own motor vehicles?

As I said at the start, try not to worry as you do have solutions available to help you deal with your debts and you have already done the hardest thing which is reaching out for help and advice.

Thanks for your advice and quick response David. We remortgaged last year and at that point our house was valued at approx £180,000' with our mortgage balance being about £137,000. I also have a loan of around £26,000 which is secured against the equity on our house. Neither of us would want to risk having to sell our family home which is also very worrying and causing sleepless nights. The majority of my debts are owed to a bank loan I have of £19,000 and with credit card debt I have of approx £11,000' and store cards/accounts around another £10,000, bank overdraft £3000. My husband owes around £15,000 on credit cards, and a £6000 personal loan. We have one car, paid outright so surprisingly no debt there.

Hi bella,

Your welcome.

From what you say the equity in your house could be minimal which might mean that a Trust Deed could also be an option.

Everyone is worried about their house but the sale of your house would only ever happen under extreme circumstances and the way the legislation surrounding Trust Deeds is set up now it clarifies exactly how much equity your house has at the outset and how you intend to pay this over and this is confirmed in writing and signed by both you and the Trustee (person in charge of your Trust Deed). I've not sold a house under a Trust Deed in a long time so with my firm that doesn't tend to happen very often. This is a key area and something which you want to discuss in great detail with the Expert you choose to help you.

The car that you have how much do you think it's worth? Any car worth more than £3,000 is regarded as an asset in a Trust Deed but that doesn't mean you would necessarily lose this so don't worry about that.

The debts that you have, do you owe any money to Barclaycard, Nationwide or Hitachi? These are creditors that can be difficult to deal with in a Trust Deed?

Have you sat down and looked at your budget in terms of your household bills / living costs (not including your debt repayments) to see what you could perhaps afford to pay per month to a plan? If you haven't don't worry as again a good Expert will do this with you. The key to a budget is not to restrict yourself too much but to be honest and accurate as it's something you need to work with for the next couple of years. I've done thousands of budgets with clients so know this is key to the success of any plan.

When it comes to your options you want to balance up the pros and cons. You could consider a Trust Deed which lasts a minimum of 4 years and if you have any asset value then this can be extended to 5 years i.e. some equity in your house or value in your car. On a DAS depending on how much you can pay per month it could be double the timescale of the Trust Deed.

I'm positive in the space of 20-30 min phone call with a good knowledgable Expert we would be able to put your mind at ease about everything and what your options are. Kevin or I the two Experts on the forum would be happy to give you some advice about things.

No I don't owe any of these creditors, and I don't think my husband does either but I will check. Both of us would want to probably speak with you or Kevin. Is it possible to arrange a face to face meeting?

Sorry also meant to say that our car won't be worth more than £3000.

Husband has just confirmed one of his credit cards is with Barclay card for around £3800.

Hi bella,

Ok that's good about the car and also the creditors.

Sure Kevin or I would be happy to discuss things with you to see how we can help and we both always tend to do face to face meetings where possible. If you want one of us to help you just click on the contact me button at the bottom of our posts and we can take it from there.

Are you feeling a little more reassured about things now you have reached out and is there anything else you would like to ask?

Hi bella,

This size of balance for Barclaycard doesn't cause a problem. In a Trust Deed creditors needs to have at least one third of your total debt balance to object to the proposal and create a problem. Based on the £20,000 your husband has and their balance they only have 19%.

Thanks so much David for all your advice tonight. I honestly feel like a weight has been lifted after so many months, and probably even years, of worrying about debt. I will be in touch.

That's great to hear bella and I'm pleased that I've been able to help. Hopefully a good night sleep tonight not worrying about your debts.

I always think that as Debt Experts with the training and knowledgable that we have we have the power to help make a real difference to someone's life when they are struggling with debts. That's the part of the job that I love the most.

Hi bellamacy1970. I'm sure there are many people out there who can identify with what you say about the time spent worrying about debts. And also many who will testify to feeling so much better as soon as they have sought expert help in dealing with the situation - if I had a penny for every time I heard someone say they wish they had gotten help sooner...

Living under the weight of a debt cloud is not a pleasant experience but one that lasts a lot longer for many people than it really should. I hope others in your situation who might be reading this can also be brave, bite the bullet and reach out for help with it. A new year is the perfect time to take control and take steps to beat a debt problem and David are always happy to help.