Hey

My knowledge is very limited but I don't think you're allowed to borrow more than £250, or maybe even £200.

Maria

Hi haggisagus.

You can, but no provision will be made in your "income and expenditure" to repay it so it's very risky to say the least.

Whether a lender will be prepared to lend to you while in a protected trust deed is another question of course.

Is there a particular reason for asking?

thanks TDA

my trust deed is due to finish in due course. However, last year I stupidly took out a couple of pay day loans, which I am struggling to pay back. If I were to advise my trustee of this I'm afraid he would make me bankrupt. I ahve enquired about taking out a personal loan to pay off the payday loans but the only option available is either a guarantor loan (unsecured) or a secured loan on my home. Before I proceeded with either option I wanted to check if I was breaking any rules.

many thanks

Your trust deed doesn't prevent you from taking out further credit. So long as you meet the terms of your trust deed I cannot see why your trustee would make you bankrupt.

What is the agreement in terms of your home and your trust deed? A secured loan seems an unlikely solution. If there is equity your trustee will want it for the benefit of your creditors within the trust deed most likely. If there isn't any equity I cannot see that a secured lender would want to lend.

How about coming to an affordable arrangement with the payday lenders until you're discharged and can afford to repay them more? If they're irresponsible enough to lend to someone without making any checks on affordability the least they could do is to help sort out the mess they've contributed to.

I do hope other readers looking at this thread will understand the serious damage that the easy temptation of payday loans can cause.

If you approach Citizens Advice or your local authority's money advice team they may have more clout to negotiate with these parasitic payday loan companies on your behalf to perhaps arrange an affordable repayment plan. They really do offer an excellent and non-judgmental service.

Hey

I took out one of these type of loans a while ago and at one point struggled to pay and I was very surpised to find that they were extremely helpful and let me then make my payment over the following 5 months.

Give them a call - much better than getting into any more debt 🙂

Maria

And, also meant to say, they froze all interest !

Hi all

There is no rule in Trust Deeds, only in sequestration.

Mark