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19/04/2010 6:01 pm
hi thanks for taking the time to read this, my husband and i have got ourself into a right mess, up until three years ago we both worked full time had good jobs and got married, i was told at an early age i could not conceive children and we handled that news with thinking our lives would be complete with each other and having nice things, we took out a loan to pay for our wedding in 2007 it was unsecured as we dont own our own home however my husband had an exceelent credit rating - however within 3 months i found out i was 31 weeks pregant against all odds this was wonderful news as we never thought we would have a family, however i had to come off on maternity and was not entitled to any maternity pay, so we ended up struggling to pay odff our loans and just got deeper in to debt, 4 months ago i had another child, another blessing in disguise we had to take out another loan to keep up repayments on cards and loans while i was not working im not due back till work till august, at the moment we probably have 20.000 unsecured debt and we have more going out than in at the moment, were both so stressed as we cant afford to meet the demands of creditors, we were hoping this would be a good option for us, however the more i read on these forums im not so sure, if our income went up by a couple of hundred pound would we have to pay this to the trust deed as i know my son will need uniforms for school and other things that i will need to put money aside for, do trust deeds take this into consideration, also we only have a 2 bed high flat and would like to buy a house in the future would this totally wreck our chances altogether of getting a mortgage, i do want to be debt free and sort this out but i dont want to be stuck in a little flat with my children all my life and know that for the next three years i cant allow myself to put money aside for the things in know my children will need within that time,
any advice would be appreciated
thanks so much
kelly xxxxx
19/04/2010 6:51 pm
Hello Kelly and welcome to the forum.
This website certainly isn't aiming to frighten people away from doing Trust Deeds; it is the right thing for some people and the wrong thing for others. We're trying to provide information so that people can think through what will be best for them (without the one-sided sales pitch that can easily be found elsewhere).
If the repayments on your debts are unaffordable it certainly makes sense to take steps to deal with the issue; left alone debt problems tend to worsen.
The contribution to a Trust Deed is based upon your income minus your reasonable expenditure. This tends to change over time which is why reviews are built into the Trust Deed process.
Expenditure for things such as school uniform are certainly a reasonable item of expenditure and provision should be made for it by you and any company who were helping you. The same applies to childcare where people are looking to get back into work.
The purchase of a family home is an understandable priority for the future. A major difficulty for anyone trying to get onto the housing ladder is that lenders now tend to want significant deposits for the purchase. This normally requires saving if a family member cannot help out.
Such saving is likely to be impossible if a large amount of your money is being used to service debts. It could therefore be argued that dealing with unmanageable debt will subsequently help you to get on the housing ladder by giving you the opportunity to save in the future.
Having significant unsecured debts will in itself reduce a mortgage lenders perception of how large a mortgage you can afford to repay and therefore how much they will lend - the Financial Services Authority mandates that anyone involved in mortgages considers affordability when lending.
Any type of debt solution, including a Trust Deed, is going to have a negative effect on your credit rating which will negatively affect your ability to get a mortgage. Anything that goes on your credit file stays there for six years. There are ways to start to rehabilitate a credit record once an underlying debt problem has been dealt with.
I hope this helps to start answering your questions; please let us know if you would like more information or clarification.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
19/04/2010 6:56 pm
thanks for your reply, im just really worried about it all and picking the right company, i have emailed kevin to see if he could help me, i also got a call from a company called carrington dean are they are reputable company connected with yourselves?
19/04/2010 7:14 pm
Hi Kelly,
Carrington Dean are a known and regulated Trust Deed company but not one that we currently feature on the site.
Kevin, Julie and Mark represent three different Trust Deed firms that we have visited, that have received good feedback in this forum, and who take time to answer questions in this forum.
The advice I normally give is, if unsure, to speak to two or three different firms so that you can make an informed choice about which firm you feel comfortable with.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
19/04/2010 8:32 pm
thanks so much for your help i will wait till kevin contacts me and make my choice from there
thanks again!
kelly
