Hello Ryju.

Your contribution to the trust deed will remain based upon affordability, so a significant increase in pay is likely to result in a significant increase in your monthly payment (subject to any changes in your expenses as well).

So would the promotion be worth it? I guess you'd need to consider factors such as your professional development, job satisfaction and in particular your financial prospects following your discharge from the trust deed.

Hi,

Thanks for the response. So would it be half of the new income?

Hi Ryju

It's something only your Trustee can assess.

It may well be that you can negotiate a sum as there are 3 scenarios:

* You accept the promotion and the Trustee seeks the majority of the extra net income.

* You advise that Trustee that you will not be accepting the propotion and therfore neither you or the creditors benefit.

* You advise that you will accept the promotion and you both agree ab acceptable increase in contribution. That way both you and the creditors benefit.

Seems logical, but logic is rarely applied in some cases.

Mark

Hi,

Thanks for that answer.

Can you now confirm whether a trust deed can be finished earlier then? If I do have to pay the majority of my new net income (from any new wage), then the "debts" will be paid off quicker than the 36 month / 3 year period I signed up to.

If I realise that the debts have been paid off within 26 months for example, would that mean the Trust Deed would end?

These dates and figures are all just examples at the moment.

Hi Ryju.

It isn't a simple as repaying the total of the debts that existed at the start of the trust deed.

If it is affordable for you to do so you'd also be expected to pay interest on the debts and the fees/costs associated with handling your trust deed.

Once that's all covered the trust deed could come to an early end. This sometimes happens when people come into lump sums for example.

Hi,

Thanks again for that response. It helps a lot. If only I had been in the position to take a wage increase prior to getting into debt.

Ryju,

I was in a position during my trust deed when my wage increased. I was asked to send in financial information related to my Job offer. My overall increase wasn't as much as yours but my IP explained to me that any contribution increase will be a fair to me and my creditors and actually the sting (contribution increase) wasn't that bad when my IP sorted it all out.

So hopefully it wont be to bad for you.

Hi Ryju,

Well done on the possible promotion.

I can understand the short term issue regarding an increase in your salary and having to pay more into your Trust Deed.

As others have pointed out, try to look long term. Once your Trust Deed is finished you will be better off per month not just with the money it will save you by being debt free, but also by the increase in your salary per month.

Speak with your relationship manager as I'm sure there will be a solution that can work for everyone concerned.