Hi all, I am so glad I found this forum as there is lots of information. I am hoping to get some advice before I go ahead and go for a Trust Deed. I have just received the forms to sign and having read through these there are a few things that they contain that were never mentioned to me.
1) there is an instruction to my emoted to deduct the money off my wages? Is this a requirement? Can I not pay directly by Direct Debit? I work for a very small company and therefore really do not want them aware about this situation.
2) the fees quoted for the TD were never mentioned to me, not surprised that there is a cost but is this included in the monthly payments they have quoted me that I will make when I enter the TD or is this a separate lump sum payment?
3). There is something about allowing revenue and customs. Correspond with the trustee regarding my tax and NI? Is this normal, what implications does this have?
And final question - am I doing the right thing? I have about £25k of debt and paying £900 a month to this. Being a single mum I just can't afford it anymore. Have considered payment plans etc but felt that this option was the best for s fresh start in 4 years time.
Thanks for your advice
Hi f1fee and welcome to the forum.
You are doing the right thing seeking further advice and information before signing the paperwork and posting it back as once you are in a Trust Deed it's very difficult to get back out.
When you say paperwork was posted to you have you actually sat down with an advisor face to face to discuss your full financial circumstances? This I think is key to ensuring you make the right choice.
In order for us to say if a Trust Deed is a suitable option I would need you to share some more information about your circumstances. Can you tell me if you own and assets and how much you feel you can afford to pay per month?
To answer your questions:
1. The payment should be paid by direct debit or standing order but if you miss two consecutive payments then your employer can be requested to deduct your payment. Was this explained to you?
2. Fees are included within your monthly payment so no separate lump sum payment.
3. Have you always been an employee in employment? Sometimes we need to correspond with HMRC to see if you owe them any money. This shouldn't have any implications for you.
4. It's hard for me to say if you are doing the right thing with the limited information I have about your financial circumstances. A Trusf Deed can be a very effective tool to clear unmanageable debts but you need to be sure it's the right option. Did the company you are speaking with explain all of your options or just a Trust Deed?
When it comes to speaking with someone you need to ensure that you feel comfortable with the advice and information you are being provided with. It's important not to rush into things but to make the right choice for you. If you do that then you should enter a plan which is the right option and will help you clear your debts.
David is not currently posting in the Trust-Deed.co.uk forum
Hi David and thanks for your advice.
I have done this all over the phone as I really don't have the time to meet with someone to discuss it. The company did offer to have a face to face but I was happy to do it over the phone.
I have no assets, I rent a property, I have a car that is on php but they said this would not be affected. I have always been an employee but they never mentioned about HMRC at all.
I guess I am just wary that there are hidden issues. Especially when I receive paperwork about things they haven't discussed with me, it makes me wonder what else have they not notified me of?
Hi f1fee.
Over all the years we've operated this site the two most common source of big problems arising later have been:
1 - The involvement of cold callers (because they too often spread misinformation and outright lies).
2 - A lack of a face-to-face meeting where you can truly and fully establish exactly what you're entering into, warts and all.
I appreciate that time is limited, but if you can find any way to meet with a firm that you're intending to proceed with then I cannot recommend it enough.
Hi f1fee,
Not everyone is able to meet face to face for various reasons but we always try to encourage this where possible. It allows you the chance to actually meet the qualified Expert that would deal with your case from start to finish for the next4 years.
If you are having doubts or niggling issues right at the outset of a plan and you have some questions which haven’t been covered then you may wish to seek a second opinion with another Expert to compare the advice and service that you have been given so far. Advice and service can vary significantly from firm to firm and as I previously advised once you are in a Trust Deed you are tied to that company so you need to be happy and confident with everything.
There may be other small things which haven’t been discussed with you about a Trust Deed that another advisor. For example with a car agreement within the terms and conditions there is normally a clause about termination in that if you enter into a Trust Deed or Sequestration or come to an agreement with your creditors then this can be grounds for the agreement to be terminated. In my experience the finance company don’t tend to terminate the agreement unless there are arrears and you’re a problem payer but it’s something I think should be pointed out to a client so they know the full implications. Again, a review of your finance agreement and the terms and conditions should take place to see if this clause is in your agreement and if it is for it to be pointed out. Kevin or I the two Experts on the forum would be happy to give you a second opinion if you wish to reassure you.
You need to be sure you know the full pros and cons and completely everything that is involved.
Can you tell me if you owe any money to Barclaycard, Nationwide, Hitachi or even the credit union and if so how much? Reason I ask is they creditors can object to a Trust Deed proposal.
David is not currently posting in the Trust-Deed.co.uk forum
Hi f1fee
A Trust Deed may well be a very good option for you, but as David says, it is difficult to say without knowing your situation in more detail.
How much do you pay for your car and which finance company is the finance with? The person who advised you is probably right about it not being affected, but they cannot promise you that 100% so should have warned you of the possibility of the car agreement being terminated, even if it is slim. There are one or two finance providers in particular that can be problematic.