I'm slightly confused to be honest. How does this settlement figure come into it - do you have a lump sum available? Or are they just saying that this is likely to be what you will have to pay over the course of the Trust deed before your obligations will have been met in full?

You could maybe start by asking them to provide you a more detailed breakdown of how they are reaching this figure - it does seem a lot.

Hi Ac863,

I'm the same as Kevin. I'm a little confused.

I would ask for a detailed breakdown in writing regarding a settlement figure. This should provide some clarity and then we can help you with further advice.

In a Trust Deed now to settle it early you need to pay your full debts plus interest and any fees associated with the Trust Deed.

Can I ask why your Trust Deed is scheduled to last 5 years and 12 months?

I think Ac863 is suggesting that the trust deed may be reduced from 5 years to the minimum period of 4 years in the event that monthly payments are increased.

Now you have pointed that out TDA re-reading the post that makes sense. Currently at soft play with the kids today and it has my brain scrambled!

How much extra per month can you afford to pay Ac863 to your Trust Deed?

Was your TD over 5 years because you own your house or was it to make the monthly payments more affordable for you?

NOTHING scrambles a brain like taking kids to soft play!

Oh I don't know TDA....the PPI thread on here....[;)]

No tinsoldier - the PPI thread isn't in the same league!

Ac863 - please let us know a little more when you next get the chance to check in to the forum. We may then be able to help you more specifically.

I'm a little unclear how much debt each of you has in your individual trust deeds, which seems like a very important detail.

If there's a joint debt please include the full amount for each of you. For example, a £10,000 joint loan would add £10,000 to each of your individual debt totals (rather than £5,000 each for example).

Hi

Thanks for the replies above I'll try and clear up some of the confusion I've caused. We currently pay £619 pounds per month into the Trust Deed against a total debt of Approx £52000 we have 1 loan and 1 overdraft that is joint which totals £19000. My Trustdeed is £419 and my wife's £200. I can afford to increase my payments to £4000 per month.

We don't have a lump sum to settle completely so what I asked was how long would I require to pay the higher rate before I was able to be discharged. I have been told that the trust deeds are separate and I can't include my wife's in this and we own our own house I dont see why I should pay nearly 70k on a debt of of 52k

Hi Ac863.

Sorry to keep asking questions, but I'm still not quite clear.

I can see you have a total of £19,000 of joint debts.

How much debt does each of you have that isn't joint?

Have you asked for a breakdown of how they arrived at that figure yet Ac863? That may help a lot in clarifying matters.

I suspect this is as much a problem of mathematics as anything else. The way fees are proposed in Protected Trust Deeds was changed in November 2013 and became that a Trustee had to structure their fees in terms of a fixed sum plus a percentage of realisations (ie a specific proportion of the funds gathered in throughout the term of the Trust Deed).

Obviously, if you end up paying in a lot more than originally envisaged then simple mathematics will tell you that the trustee's fee is going to add up to a lot more too. Given the size of the sums involved here, it is meaning that you are being hit in the pocket quite severely.

Hi Ac863,

Like Kevin has advised I think you need to ask your Trustee for a breakdown in writing regarding how they have calculated the amount you are due and we can take it from there.

If you’re in a positon to pay back all of your debts then you pay the debt, plus interest and then the costs of the Trustee. The costs of the Trustee depending on how much is ingathered can be quite large.

Hi

In reply to TDA my liabilities are £34000 my wife's £6000 and £19000 joint

I haven't asked for an itemised breakdown as we don't have a lump sum to pay off the debts in one go. If I up my payments to £4000 per month how nag would it take to conclude my part of the Trust deed and how can we pay my wife's off early

Thanks Ac863.

For the purposes of your individual trust deeds then your debts are around £53,000 and your wife's are around £25,000.

We know you've been informed that you'd need to pay £70,000 to finish your trust deed. How the difference between £70,000 and £53,000 breaks down in terms of trustee fees, interest, or anything else, is something only your trustee can tell you.

If you were paying £4,000 per month from day one then £70,000 would take a little less than 18 months to clear.

Once you were finished in this way, the joint debts would have been fully repaid. As such your wife's debt within her trust deed would now just be £6,000. Even with fees added on top, it seems your wife's trust deed could then be completed with your assistance very quickly.

Hi TDA

Thanks for the reply I understand now where they have the figure from I do think that £70000 is excessive and have written to them to ask for an itemised breakdown of interest fees etc

Many thanks for all the advice given in here it's been extremely helpful