Hello Amerififer,

Welcome to the forum.

Eurodebt are a large well-known debt management company with a network of franchisees around the UK. Some people consider their debt management set-up fees to be comparatively high.

They do not directly offer Trust Deeds.

So that our experts can help to identify some of the pros and cons (as they will apply for you) between the different solutions could you let us know:

1 - How much unsecured debt you have.

2 - How much you believe you could afford to pay towards your debts each month.

3 - Whether you have any significant assets (such as equity in a house that you own).

Hiya and thanks for the quick response.
I am thinking about going the protected trust route.
I have guuuulp about ?ú34,000 of unsecured debt.(personal loan,two credit cards and overdraft)
I'd think i could easily pay ?ú300/350 a month if i wasn't having to pay all the loan/cc/overdraft fees.
I have a mortgaged property with very little or no equity.
I've been doing some reading on here and the site is verrry helpful it has given me a better understand of the trusted deed. My main concerns are to be able to protect and keep my flat and my car(6 and a half years old now)
Thanks for the heads up on the general consensus on their management set up fees being high.
Thats things in a nutshell. [:)]

Hi amerififer

if all creditors froze interest for the full period, which is possibly unlikely, it would take approx 8 years to repay the debts. Unfortunately there is no guarantee that this would stop legal action etc. The Trust Deed would be over 3 years and freeze interest and legal action.

There are other factors in making the decision as well. The car is unlikely to be a problem, however do you know if there is any equity in the flat?

Mark

Hi Mark
Thanks again for the fast response. Im glad I found this site. As i said in my response to Amy I have very little if no equity in the flat due to the current climate.
All that i've read so far it looks like the trust deed is the probably the best way to go for me. As you said with it.. it would be over in 3 years.
For me the most important things for me to know were protected as I said would be my flat and my car(as without my car I can't do my job)
Again thanks for any and all advice.

Hi Amerififer,

Based on your level of debt and disposable income, if you were to enter into a debt management plan it would take probably 9 or 10 years to clear your debts (a rough estimate - depends on what charges you pay along the way to this debt management company, it may be longer).

A trust deed should certainly be viable, which would mean you would be debt-free after three years. This is the principal advantage of the trust deed, you are getting a sizeable proportion of the debts written off so that you can be clear of them much more quickly.

The disadvantages of the trust deed depend on your circumstances

- if you had any assets then they could be at risk. Having said that, if there is little/no equity in your house and if your car is 6 1/2 yrs old then it should be very easy to account for these assets in the proposals so that they are not affected at all. This should all be addressed and agreed in advance of signing anything.

- your credit rating will be affected (though this is also the case with a DMP). It is worth remembering, though, that whilst the black mark of a trust deed on your credit record could be viewed more severely by future lenders than the defaults that are normally registered if you were in a DMP, the debts themselves will show as settled after 3 years and the trust deed disappears from your file after 6 years. Compare this to the fact that if you went for a dmp you would still have debts showing against you for however long it takes to clear them, ie 10 years or so.

- there is an increased risk of sequestration, for example if your circumstances change and you are unable to fulfil your obligations under a trust deed. Again though, you would surely still have a problem if you were in a DMP and your circumstances changed - and the likelihood of change in your circumstances for the worse is a lot higher over a 10-year period than a 3-year period.

- if you work in certain professions/sectors (eg financial services) a trust deed may affect your job/employability.

Hope this helps. It may read like I am trying to plug trust deeds to you - I really am not. It is just that for individuals who have large debts which are going to take a very long time to clear, and who have little or nothing by way of assets, then a trust deed makes a lot of sense. Having said that, if you would rather pay your debts in full then a debt management plan may suit you best (though I would recommend looking at the Debt Arrangement Scheme first if you are choosing to repay the debts in full over time).

Kevin,
Its great that you all work together to give some great advice. It is greatly appreciated.
Aye the reason I am looking more at the protected trusted deed is indeed that it is over in 3 years and that after 6 total my credit would be restored to baseline. At least that is my understanding of what happens.
Since I very little/no equity in my flat and my car is 04 reg it seems as those would be protected.
I like the thought that after 3 years i'd be clear of the heavy weight round my neck known as debt. Also that after 6 its off my record.
Just had a meeting with a EuroDebt Advisor in person yesterday and found this forum yesterday as well.
The forum has answered a lot of questions for me. Now to just decide to who to go with someone at euro debt(though Amy said they tend to have high start up fees.so that doesn't sit well with me) Or one of your recommended firms on the site.
Thanks again to all who have responded to my query. It has been very informative/educational and helpful.