Hi gmac.

I'm afraid the increase in contribution is not likely to result in a reduction in the term. The contribution is based upon affordability.

There would be a reduction in terms if the debts would otherwise be paid in full, plus interest, plus trustee fees.

Where I suppose you might have an argument is the additional months that are tagged on at the end. If your trustee is looking to collect a particular sum of "arrears" then it might be that an increased contribution after August 2017 clears that up a little sooner. Something to ask about perhaps.

Hi gmac,

Well done on the new job and extra income.

Can you clarify why your Trust Deed is being extended until December 2017? Is it because of a payment holiday due to your husbands redundancy?

If this was the case did his payments stop all together or reduce during this period?

Hi David Tannock

The reason for the extension was due to my husband being made redundant. We reduced our payments to from £250 each to £50 each per month (as we are both in a TD) until my husband secured a permanent role, which he did in October.

Once he received this post we let our TD know and stated that we would not be able to afford to pay £1000 each to make up the payments so they stated that they would add this to the end of the TD and would finish in Dec 2017 instead of Aug 2017. Can they do this? Is this normal practice? We have been very honest and open with our TD. I have stated that any increase from my wages will be split between both my husband and I's TD as we only have the one joint account. Is there a chance we can get the TD to end on the original date?

I don't see any reason at all why your Trust Deed shouldn't be able to finish on the original date if the net effect of the changes means that you will end up paying what was originally proposed by then.

Speak to your trustee as it is up to them really, but it wouldn't be fair for them to extend for a fall in income but not bring I back to the normal term if there is a subsequent increase.

Thanks for the information. I will speak with our TD.