What’s making you sway towards a DAS rather than a Trust Deed?

The internet can be both a good source and bad source of information regarding debt options and sometimes the horror stories. It’s a bit like having a sore head and looking up the symptoms.

You are doing the right thing comparing the pros and cons of both solutions based on your circumstances and how each one could impact you in the future. This is something that the advisor should cover fully with you.

In terms of the car finance it’s just something that you will need to think about the closer it gets to the end of your finance. It’s a bit of a trade-off for entering into one of the plans that it will impact your credit rating. Sometimes a work around for people is to either buy a car for cash that’s cheaper or even ask a friend or family member to take the finance out in their name and for you to make the payments. There are also various lease options that you could look at. The important thing to look out for is if you do take a lease or finance in your own name how much interest or fees you will be charged.

It is due to the fact it isn't a form of insolvency. Plus it won't affect any assets (just my car in my case). And it's only 7months longer than a potential trust deed.

All sensible things to think about and take into consideration and only for 7 months of a difference in timescale between both.

Let us know how you get on after you speak with the advisor on Thursday.

Thank you! I'll let you know my thoughts once I speak further with the advisor. I appreciate all your input.

Your welcome, happy to have helped a little.

Sounds like you have your head screwed on, Steff90. It's perfectly natural to feel a bit fearful when thinking of entering into a debt solution like a DAS or Trust Deed, but you seem to be thinking things through logically.

I think it is quite a big psychological hurdle for people to jump over when they have been trying so hard to make contractual payments for so long, to then change tack and face a poor credit rating as a result.

A DAS may well be a good route for you - as long as the monthly payment is affordable. It does sound slightly worrying that you feel you might need to wait a few months before signing up in order to build up a contingency fund. Possibly a sign that deep down you feel the budget might be difficult to stick to??

Hi Kevin. Thanks for your reply. Yes it's a tough decision to make but it has to be done I realise that now. The emergency fund is just for my own peace of mind as I've read it on other forums that this is what people do/have suggested. As I'm a single parent it's crucial to me I have a backup incase. It's scary thinking you won't have access to credit so it's just a thing I have been thinking about.

There's certainly more scope to do that with DAS than a trust deed Steff90.

I guess the thing to weigh that up against is that the delay in starting will add to the time it takes to put all of this behind you.

Payment holidays are possible during DAS if a genuine need arises. That might be worth taking into account.