Welcome to the forum xXRandomTaskXx.

I'm sorry to hear that you find yourselves in this position.

How much do you think that your car is worth?

In terms of the debts, how do they split up between your partner and yourself?

We'll be in a better position to offer you some thoughts with these extra details.

Hi RandomTask and welcome to the forum.

Well done for taking the hardest step in reaching out for help and advice.

TDA has asked some important questions that will help us to better understand your circumstances.

When it comes to your options you have three main ones. A Debt Arrangement Scheme, Trust Deed and Sequestration.

A Debt Arrangement Scheme works on the basis that you repay all of your debts in full over an extended period. This plan doesn’t take into account any assets you have i.e. your house or car.

A Trust Deed and Sequestration work similar to each other in that the value of you assets need to be established to see if these have any equity. Ultimately if your property doesn’t have any equity then it’s not going to be at any kind of risk as long as you were in a position to successfully complete the plans.

You can’t do a joint Trust Deed so there would need to be one in each of your names. Also, the minimum debt level that you need to have is £5,000 per person as it’s individual. Another thing about a Trust Deed is you need to be in a position to make a suitable payment per month and the payment can’t come from any benefits. If only one of you is working then it might not be possible for both of you to enter Trust Deeds. It could therefore be the case that a Debt Arrangement Scheme could be a more appropriate solution for you both as you can do a joint DAS and put all if the debt into it with 1 monthly manageable payment.

The best thing to do would be to reach out to an Expert about your situation for specific 1 to 1 advice. Kevin or I the two Experts on the forum would be happy to help you with this.

The positive thing is that you have solutions to help you become debt free. It’s just taking your time with an Expert to work out which solution best suits your circumstances.

quote:

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Originally posted by TDA (Debt Adviser)
[br]Welcome to the forum xXRandomTaskXx.

I'm sorry to hear that you find yourselves in this position.

How much do you think that your car is worth?

In terms of the debts, how do they split up between your partner and yourself?

We'll be in a better position to offer you some thoughts with these extra details.

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Hi

my car is roughly worth 6K with the finance being around the same level, which is Hire Purchase so i technically do not own the vehicle.

All of the debt are in my name.

Also to ask if my partners Tax credits would be used when calculating a trust deed?.

Hi RandomTask,

If your car is on finance then there shouldn't be any risk to the vehicle as long as you were up to date with your payments and maintained them going forward.

If all of the debt is just in your name it makes things a little bit easier in terms of looking at your options.

Ideally when it comes to looking at your budget the easiest way to do this is to look at the full household income and the full household expenditure. Whatever is left over can then be split between you and your partner in terms of a % basis on who brings what income into the household. Your payment in a Trust Deed won't leave your partner at a financial disadvantage.

Can you tell me who you owe money to? Do you owe any money to Barclaycard?

quote:

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Originally posted by David Tannock
[br]Hi RandomTask,

If your car is on finance then there shouldn't be any risk to the vehicle as long as you were up to date with your payments and maintained them going forward.

If all of the debt is just in your name it makes things a little bit easier in terms of looking at your options.

Ideally when it comes to looking at your budget the easiest way to do this is to look at the full household income and the full household expenditure. Whatever is left over can then be split between you and your partner in terms of a % basis on who brings what income into the household. Your payment in a Trust Deed won't leave your partner at a financial disadvantage.

Can you tell me who you owe money to? Do you owe any money to Barclaycard?

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OK

I will need to get all figures together.

I have a Barclaycard Initial CC, Is this an issue?

In all honesty i would like to repay all my debt but the amounts we are repaying is causing issues.

Hi RandomTask

How much do you think you can reasonably afford to pay each month? This will really determine what your best option might be.

Hi,

Thanks for sharing more information.

How much do you owe to Barclaycard? Also, who else do you have debt with?

To look at your options a good Expert will need to know the following:

- your total debt and who you owe money to
- the exact amount of your outstanding mortgage
- an income and expenditure statement

With this information we will be able to say which options you have available to deal with your debts.

Everyone's focus is on repaying the full amount of their debt but it's about finding a balance and ensuring that you can afford to live and look after the kids.

quote:

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Originally posted by Kevin Mapstone
[br]Hi RandomTask

How much do you think you can reasonably afford to pay each month? This will really determine what your best option might be.

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I will need to calculate all figures, but as it stands when paying every thing and not including food or car fuel i have less than £100 left per month., we are basically living off tax credits and child benefit that my partner receives, so if we could see a marginal fall and we new when it would be all clear would be better as we seem to be just making minimum repayments and when financial emergencies arise we have to rely on short term loans.

Hi RandomTask,

In a Trust Deed you need to pay a minimum payment per month which the lenders will be prepared to accept and something which you can sustain every month. A payment less than £100 per month probably wouldn't work for a Trust Deed.

Under the circumstances whereby a person isn't able to afford a suitable payment per month to a Trust Deed then Sequestration could be a more suitable option. This option works similar to a Trust Deed but doesn't require a minimum payment per month. All you pay is whatever you can afford to pay for 4 years.

With regards to your house, in a TD or SEQ the equity in your house would need to be established up front to see if a TD / SEQ is suitable and what implications this could have. A good Expert should be able to take you through all this and confirm how things will work.

Is there anything else that your worrying about?

HI

I have looked at my debt and have the following figures

total debt excluding car and house:
£9850(13 creditors) and paying £747pcm inc(barclaycard £1293)
Car balance roughly 6k @ £113pcm
Mortgage £66120 @ £165 (no endowment in place) unsure of equity as not had house valued in a while and cannot base on market values as they have fluctuated.

Other bills including mortgage and utilities etc come to £613.

I have not missed any payments.

all bills cover 100% of my wage and we live off tax credits etc.

I do not want to risk car or property so think debt management plan may be the best option

Hi RandomTask,

Thanks for sharing all that information.

I think the best thing to do is reach out and speak with an Expert about your circumstances to get specific advice on all of your options.

The best thing to do is look at all three options, the pros and cons and then decide which option best suits your particular set of circumstances.

If you looked at the Debt Arrangement Scheme paying £100 per month towards your debt would take you approx 8.2 years. A TD or SEQ may only be 4 years. That's why it's best to look at all options.

As I said at the start the positive thing if you do have solutions to help you manage your debts and not have to pay over £700 per month.

Hi RandomTask

When you say you have less than £100 left after all bills are paid, are you including debt repayments within those bills? What you really need to do is take them out of the equation and work out what is left from your income/tax credits etc after your other living costs are met but not including the debt payments. This figure is what you can afford to pay to your debts and is crucial to assessing your options.