Hi sjm750.

I'd suggest contacting your trustee once your final payment has gone out to confirm they agree that it's appropriate for the payment to be cancelled at that point.

I don't know what the average period it takes to discharge a client is, but I do know that it varies a lot from firm to firm. Ask your trustee how long they expect it to take normally so that you've got some information that's relevant to your situation.

Regarding car finance, the question perhaps is what terms can you get it on. The weaker your credit history, the more recent a trust deed, the more you're likely to pay for finance. If you wait a while and take steps to improve your credit file you might not only make it more likely that you'll get finance but also might be able to obtain it at a lower cost.

Hi sjm750,

Well done on reaching this point in your Trust Deed journey.

We send out a letter to all of our clients when they are coming to the end of their Trust Deed to advise them how many payments they have remaining and what will happen now i.e. receiving their discharge, paying creditors etc.

I would suggest giving your Trustee a call now to ask these questions. You will be able to clarify when your final payment is so that you can then cancel the standing order and ask them about your discharge (Form 5) and when you can expect to receive this. You can then start planning for life after the Trust Deed.

Once you are discharged that's you debt free. As TDA has advised the TD will still have an impact on your credit rating and your ability to secure finance on a vehicle. It's always worthwhile dropping into a car garage to ask about finance and what they can offer you. You could do this now to see what they say or wait until you have been discharged. Best to be upfront about your Trust Deed and credit history. Car salesman will work extremely hard for a sale so they may be able to source finance but you need to be careful about the level of interest etc.

Hi

Yeah I will contact them them, once that last payment goes through. Yeah I realise that I might get a better deal if I wait awhile. Though was wondering if I had to wait to be discharged or when the final payment , if I was going to go ahead with a new finance package.

Thanks for that 🙂

A lot of finance agreements you can purchase the vehicle and then start the payments 1 or 2 months later.

You could plan it that the finance payment kicks in the month after your Trust Deed payment finishes. You could still be in your Trust Deed awaiting your discharge and have a new vehicle.

I don't see any harm in looking at finance/cars at the moment if you have 1 or 2 payments remaining.

You just need to clarify with your Trustee exactly how many payments you have remaining and when after the final payment you will receive your discharge.

I think finance will be really hard to get while not yet discharged sjm750.

When we looked into it a while back the major provider we found charged pretty high rates and needed a letter of consent from the trustee.

The rates started falling post-discharge with that provider.