Welcome to the trust deed forum debtmad2011.

Payday loans are no barrier to starting a trust deed.

Most trust deed providers are seeing an increased number of these types of loans in the creditor lists of their clients. They are included in exactly the same way as other debts like credit cards.

Hi debtmad2011

Payday loans are treated exactly the same as any other debts and would be included.

These types of loans are becoming more and more regular in Trust Deeds, so I wouldn't expect any problems.

Mark

Thats a relief 🙂 i was worried about that. Also i have car finance with black horse will they take my car away? I was hoping that i could possibly keep it but if not then i guess if i want out of debt i need to make a wee sacrafice.

Hi again.

If the loan is secured on the car you'll almost certainly be able to keep it so long as you have a reasonable need for the car and keep paying the loan.

If it's unsecured and you need the car you'll keep it and the loan will go in the trust deed. If the car in this scenario is worth more than £3000 it is likely to be seen as an asset though which will then somehow need to be dealt with.

Thanks for your help its making my decision easier. I dont think the car is secured although i would have to check. I need my car because sometimes i need to travel for work. I think i will make an appointment for a trust deed but one last question - i have already defaulted on some paynents should i try and pay them before i enter a trudt deed?

Hi debtmad2011

There's no right or wrong answer re the payments. Best advice would be to sit with someone, look at all the options and see what best suits and then they should be able to advise.

Mark

Whether you make payments really depends on whether you can afford to or not - but don't worry if you can't, it wouldn't affect your chances of getting a trust deed agreed.

Re the car, you should check the finance agreement. If it says fixed-sum loan agreement then it is unsecured, if it says Hire Purchase or Conditional Saler then it is secured.

Thanks for your advice. Spoke to trust deed guy today and. I get to keep my car and include my payday loans so im super pleased. While i cant obtain credit for 3 yrs and prob find it hard toi get mortgage im gonna be able to save and put money aside and hopefully in future only credit ill need is a mortgage.

Hi debtmad2011.

I'm glad to hear that you've found a solution that will work for you.

Saving more than modest amounts will be tough during the trust deed but once you've put your debts behind you I'm sure you'll be in a position to set aside money to cover things that previously had to be bought on credit.