Hi Bottomlesspurse.

That's a really thoughtful and interesting post.

I wonder what other members will feel...

I agree with Bottomlesspurse in that if you earn any additional monies during the period that these should go to your trustees to benefit your creditors. It would also appear from other posts that the trustees are reasonable people and if you have earned/receive additional money they may not in fact take all of the additional monies. This is explained at the start of the TD and is included in the paperwork, at least it is in mine. I entered into a TD as being the only viable solution for me apart from bankruptcy. Although I am in the very early stages with 35 payments still to go I feel a new person and greatly appreciate the mechanism of TD to allow me to gain control of my finances and providing me with a fresh start. I would have preferred to go down the DAS route and repay all my debts but this was not possible so the fact that I may have to pay additional earnings to the TD seems fair and reasonable as had they formed part of my income at the time of entering the TD this would have been reflected in the payment expected to the TD. This may not be every ones idea of what is fair as everyone is an individual with different circumstances and feelings but I feel it is a reasonable condition of TD's.

Interesting post. I agree with most of your sentiments. Whilst there were many factors outwith my control that lead to me going into the trust deed, the main reason was me not tightening my belt when my income dropped.

I think the reason most people get upset about being asked to pay bonuses etc into their trust deeds, is that it wasnt properly explained to them before they signed the trust deed how thinks like that work. It certainly wasnt in my case.

Not a free ride,nor an easy option,and should be undertaken only when you fully understand what its all about!!!

Paul

I am just completing a TD. It has been the most stressful experience of my life and was not a free ride in any way. It has affected me badly. I live on a very low allowance (understandably), and this has excluded me from many events that I would normally have participated in - and this has ultimately (naturally) excluded me from social and business groups.

My confidence has dropped, I look 10 years older in the past 3 years. I have no spare money to maintain the house which has also dropped in value. I almost lost my job because of the position I hold which includes trustee of the pension scheme. Fortunately, when I explained the circumstances they were happy to continue due to my previous record.

All because I bought at a higher price; my buyer pulled out and I had to sell at a significantly lower price to get rid of my first house causing a huge gap in the finances.

Right up until I was advised to enter into a Trust Deed, I had no late payments and credit rating was very good. I simply got to the point I could not pay the monthly outgoings.

My current house has lost value so it cannot be sold and maintenance is not up to standard thus affecting the likelihood of selling, so I could not release money from that.

I, as an individual, do not consider it a free ride in any way and I appreciate the fact I was able to take this option (it was this or bankruptcy).

I have paid extra when I have had an increase, however, if I am honest, I have yearned to have a little extra to make life a bit easier - I guess I am only human.

It has been a very very difficult journey which has taken a toll much higher than the repayments or the money I owed.

I am still not out of the woods. I may have to find money to settle some equity on the house based in TD survey - and yet the house is worth less than it was then; so I cannot release it, sell it or raise money because of credit rating.

In my case, a double-edged sword, although again I say I am very grateful I had this option. Not an option I would recommend unless it was fully understood from every perspective.

It is not an easy ride, but for some folk who are at their wits end, it is a perfect solution- as long as things are explained fully, particularly regarding houses. Just make sure you .get it all in writing!!

iv just entered into a trust deed and its certainly not something id consider a free ride. i have amounted debts over the yrs, basically due to my own irresponsibility and also lack of education to help me understand what credit and interest etc is all about. ironically my parents had a trust deed back in the last recession (which i only found about after telling them my situation) due to my dad starting up his own business, doing well to start with and then the recession hit. unfortunately they lost their home too as cldnt afford the payments. i thought they were just moving house (i had to find out this yrs ltr through a friend, wish they had just been honest). i remember getting my first store card at 18 and thinking this is great, can spend 300 quid and just pay 20 pounds a mth. anyway long story short over the yrs accumulated debt, consolidated it and accumulated it again, not something im proud of. im sure there were plenty of us though, living above our means in the buy now worry about it ltr era. now that i have 2 kids to think about i decided to start being more proactive about my situation. the guilt i feel about not being able to take them on holiday or decent days out because i pay so much to creditors and never making a dent in it was eating me up and i decided to go down this route. i fully expect, if by some miracle i win the lottery or get a lovely pay rise, to contribute more to my debt or potentially pay it off. i just wish i had been more educated in the first place, which after this experience my children def will be. i remember seeing something martin lewis was talking about about introducing budgeting and finance into school curriculum and i couldnt agree more.

ps bottomlesspurse i agree with what ur saying maybe some folk are disgruntled because they dont fully understand things in the first place and werent informed. since iv signed the trust deed i feel a weight has been lifted. not looking forward to the phone calls next few wks and the wait to protected status but will bury head in sand as im good at that 😉

quote:

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Originally posted by fifi

ps bottomlesspurse i agree with what ur saying maybe some folk are disgruntled because they dont fully understand things in the first place and werent informed. since iv signed the trust deed i feel a weight has been lifted. not looking forward to the phone calls next few wks and the wait to protected status but will bury head in sand as im good at that 😉

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Ignore the calls as best you can fifi,they will have no impact on you getting protected status so keep that head down for a few weeks!!

Paul

Thanks plasticdaft that's me in the gazette from today so 5 wks and counting!

I agree with everything you say Bottomlesspurse however...

When my income dropped by around £340 a month, I informed my Trustee, completed a new I&E form, sent it off and waited. I received nothing back from Trustee, continued to struggle to pay my payments to the TD, fell behind, threatened with my TD being cancelled. I had to eventually pawn my engagement ring to make up one payment!

Luckily I managed to get a new job with a salary slightly less than when I first signed my TD the relief was immense. There has to be some give and take with this issue - but in my experience it was all take!

Hmm yes agree with all you say, however, I personally feel that the Trustees are only out for themselves, they are the only ones who get what they end up being owed in full whilst we have to dance to their tunes and agree to everything they come up with as they go along. I'm waiting on my Trustees discharge 14 months after making my final agreed payment and apparently they are now looking at PPI even though I've told them I'm 99 % certain I didn't have any. Meanwhile I'm stuck with a SVR rate mortgage as I now can't change lenders and my own lenders fixed rates are not any different from their higher than normal SVR. All my moans are with regards to a complete and utter misunderstanding re the equity situation. I sailed through 3 years of payments safe in the knowledge that I knew what I was doing at the end of it only to be told that no I couldn't do that and so the whole thing got very messy at the end. I genuinely believe that I was misled with regards to the equity, what I was TOLD was not what was written down but which I stupidly didn't read properly and didn't then query when it didn't tie in with what had been agreed. That left me with no legs to stand on and their word against mine, you can guess who won that round.

I don't doubt that TDs are the best option for some people maybe even me had it been arranged the way I thought it was in the first place but the main lesson for me and that I'd give everyone else is read every single bit of paper you recive from your Trustees and if you don't understand or disagree with any of it get it sorted immediately, that way there are no nasty surprises at the end of it. My own fault I realise now but they were supposed to be the experts.

Would be interested to hear if anyone else has had a TD that did go to plan without hitches and is now all settled. Thanks again to all those who contribute to the forum.