Hi Rocky - I'm not an advisor but have also been were you are now! I know its easy to say but try not to worry - you are not alone. Many people have got into difficulty with debt but there is a way out. I'm coming to the end of my TD and although I'm having some problems being discharged, it did offer my a way out of my debt crisis. One of the major advantages for me is that over the last 3 years I have learned to live within my means and budget accordingly. There is light at the end of the tunnel! Good Luck!

Hello Rocky,

Welcome to the forum.

You've taken a large and brave step in facing up to the situation that you find yourself in.

I know the next couple of weeks will not be easy while you wait for your appointment so please feel free to share your thoughts on this forum if you'd like to.

Hi Rocky dont worry about it, you havent comitted a crime and no ones died... your debt level is way way below the national average. I owe about 40000 in credit card debt and have paid back over 680000 in the past 5 years due to the interest levels of 30 + per cent have you tried the DAS scheme http://www.moneyscotland.gov.uk/das/

Trust deed asst gave me some really good advice a while ago about how you end up subsidising yourself with more debt and increase the problem,as you run out of money, a Trust Deed is a really severe course of action, the people on here who offer the advice are clear about that but some companies make it sound easy and stress free... eg: 'You could be debt free in 3 years' or 'Have your debt written off now'. The professionals on this site are clear about the implications long and short term... read their advice Ive found it really helpful. Just make sure you make the right decision for you.

Good luck

After a year and a half into a Trust Deed I know how your feeling, its all eventually caught up with you. If your payday loans were cheques supported by a guarantee card they will be cashed by the bank and as your wages are going somewhere else that will just be added to your overdraft, so they wont bounce, I dont think. Theres no point in worrying because I did and I really didnt need to.

Whichever scheme you go into it will certainly change your thinking about spending !!

thanks everyone for replying, i am still worried dont think i'll be right until it's all in place. it's not an easy option at all and although my outgoings have been much much more than my incomings from now on i'm going to have to keep to a strict budget and not rely on credit. like a lot of people i was robbing peter to pay paul and i've ended up in a real guddle. what do youse think my chances of being accepted for trust deed with 8 grand of debt and proposed repayments of 120 a month on 13.5 k wage?
thanks all xx

Hi Rocky,

?ú120 per month is right at the low end of the minimum payments I am aware that any Trust Deed firm will accept. Having said that your advisor must think it is viable and hopefully understands the criteria applied by the firm that you have been pointed towards.

As mentioned in the great posts by other contributors here, alternative options do exist if for any reason a Trust Deed isn't right so please try not to worry too much.

hi
my adviser phoned the trust deed company and said about what i could afford to pay and they reckoned this should be okay. if it doesnt work i would try for LILA bankruptcy drastic step but i haven't got much to lose credit file is rubbish anyway and i dont have any assests

Hi Rocky sorry to sound like Im minimizing your debt but 8000 really isnt that bad compared to some debts.. your only 24 and have potentially 41 years till you retire, think about that before entering into a Trust Deed which can affect you well beyond the 6 years indicated. Dont believe all you hear my friend had a trust deed discharged 3 years ago and still cant get a mortgage, car on credit. If you entred DAS the interest would be frozen, you'd be protected from dillegence and would pay back 80 payments of 100... meaning youd be clear in 6 years, without the massive impact a trust deed has..DAS does affect oyur credit rating, but not as much as a Trust Deeed, simply becuse you pay back ALL of the debt over a set period and 6 years isnt that long really..Trust Deeds are recorded on the same register as bankruptcies... plus the inslovencey practitioner told me that most deeds dont get protected status if the debt is below 15000... dont know if thats true but sometimes you dont know who to believe. Over and above that if you type your name in google it will link to the Edinburgh Gazzette website with your name and address letting the whole world know yourve got a trsut deed... something else a lot of these companies dont tell you. Sorry to be negative as Trust Deeds can be a really effective tool, but youve got a full time job, with a little left over , even 100 payments of 80 would be accepted under DAS, I know this becuse my Aunt is a money advisor in Aberdeen. At the end of the day the creditors want their money back... please be careful what you decide.

hi simon
thanks for the reply. i thought about a DAS but my adviser seemed to think the trust deed would be better for me she worked out it would take 7 years to pay off DAS as opposed to the 3 years trust deed. i tried for a mortgage about 6 months ago and was refused , all I really want is a realistic monthly payment and protection from creditors just want to sort somethin out soon as been stressed over my debts for the last 2 years. my mum has a trust deed and it ends in march she says it has been hard but her debts were 10 times what i owe. its difficult trying to sort stuff out while working full time as the CAB etc arent open here at weekends and I don't want to go near CCCS etc as I really dont think they offer the same protection as the DAS and Trust Deeds do.

Your welcome, this what worries me... Ive approached about 5 different companies and they seem to be more interested in saving me money... where Im more interested in clearing my debts. One Glasgow firm charges a setup fee of ?ú350 but fails to tell you they also charge the creditors a monthly fee that they say is 'written into the deed' and 'forms part of your monthly payment'. You mentioned 7 years to pay it back, however if you get a trust deed, say Dec then you cant get credit for the three years you are on the deed, you cant have any savings, your finances are regulalry reviewed, your assets are declared, and you then have a further 3 years until you can TRY and repair it equals 6 years, your name and address is advertised in the Edinburgh Gazzette (Which IS accessible to the public via their website

http://www.edinburgh-gazette.co.uk/issues/recent/10/personal-insolvency/deeds/start=1 )

Again for someone so young I'd be very cautious about this. DAS does some damage as well but your debts will be recorded as 'settled' when its paid and provided you are making the very bare minimum payment they cant record defaults... meaning the big advantage would be the interest is Frozen which Ive found is the main crippiling factor when trying to reduce debts. DAS freezes this have you tried PAYPLAN or the CCCS Pay Plan use JUSTABANK where you can log on and see the debt come down and they dont charge a penny... they charge the creditor which gives me a great deal of satisfaction. One of my creditors MBNA I have ?ú6000 credit on that card, they are currently charging me 37% interest.... loan sharks charge on average 30 % ha ha. I have been paying ?ú250 a month for 5 years to this card and Ive brought it down by hardly anything. If the interest was frozen I would have paid it of 2 years ago... If I keep paying 250 with the current interest it'll take me another 6 years to clear it.. I worked out that they will have made over 9000 of interest from me... I was so angry about this i have got my MP invovled... the point Im making is most of the time its about charges and interest and if you can utilise a way of freezing this without causing yourself the damage full out insolvency such as a trust deed would cause then in the long run surely thats better for you. In a recent job application it asked if I'd ever been declared bankrupt or insolvent... under a trust deed the answer would be yes.... under DAS is would be NO!! Sorry to rabble on but I was told by the IP I saw in Edinburgh that a Trust Deed should be a final resort and not a quick fix to get yourself out of debt. I completely agree with everything the experts say on this site and they have helped me realise not only how effective a trust deed can be but more impotantly that there are sometimes other ways out of debt without taking such drastic measure, Im fortunate I earn over ?ú36000 a year and really feel for you but just imagine you get another job that pays better your IP would demand more money as they have a right to know what your income is and you have an obligation to tell them, the same rules dont apply to DAS provided you stick to the agreement. Plus if like me you run a car you cant always tell when you might need an expensive repair etc.. and to think you cant put aside a few hundred quid to allow for this was more than enough to scare me out of a trust deed. Not to mention a HARD EARNED holiday... forget it ! You have to declare anything over ?ú200 that you aquire in addition. Again Im sorry if I have caused you further confusion and Im no expert in this but I sometimes think that Trust Deeds are SOLD rather that seen as they LAST resort they really are.

Cheers and I'll be interested to see how it goes for you

Si

I think Si makes some good points here.

There are several different ways to approach dealing with debt. Choosing the right solution depends on a mixture of factors unique to each individual including:
1 - Severity of debt level.
2 - Likely repayment term.
3 - Ethical/moral/religious considerations.
4 - Assets.
5 - Attitude to future need for credit.
6 - Occupation.

While this site is primarily about Trust Deeds, the experts involved are clear in their starting point that all solutions should be considered and weighed up against the factors that are important to each individual.

A Trust Deed is indeed a serious step, may have some future consequences, and is not going to be an easy three years.

At the same time a Trust Deed can be an absolute lifeline for those facing up to overwhelming or unmanageable debt levels.

Hi all

Simon, I'm intrigued about the comment on the firm with the payment up front and the ongoing payment 'written into the Trust Deed'. Could you advise me the name of the company as this breaks every ethical rule. I suspect it is a 'feeder company' who will pass on the case to an IP.

On the other points, could I clarify some points:

1. There is no credit restriction in a TD. The restriction applies in Sequestration where you are unable to get credit without advising the lender of your sequestration.

2. There is no bar on having savings. If you have your income and expenditure assessed and agree a contribution. What you do with any surplus in your own business. Income is yours subject to an agreed contribution (S.32)

However I agree with the points raised and would say formal Insolvency (TD's and sequestration) should always be the last options and used when there are no other realistic options. I'm curious about the 7 year DAS. At ?ú120 p/m, this would be 5.5 years on debts of ?ú8k.

Mark

Hi Mark, thanks for clarifying things, it was Newtomorrow and Money Talk Scotland who gave me the advice, and I felt as though it was a sales pitch.

Thanks

hi all
some good issues raised simon as i have a degree plus other qualifications and i dont particuarly want to stay on a 13.5 k wage but again if i move up career ladder dont want to be paying huge whack out my wages to some company. i really dont know where they get the DAS figures from I just want things resolved before my creditors start taking action against me.