TDA,
Yes I can see that, I have no intention of dealing much with credit once this is all over! I can already sense the satisfaction of buying something outright with no ongoing payments. Mortgages are are a different game altogether, probably never be in a position for that.
David, I am going back part time so my wage will only be£100-130 more a month than I get on SMP now

Drew

Ah, that makes sense. Thanks for clarifying, Drew.

I can understand where you are coming from when you say that you feel you should pay the debt back in full. Try and remember though that the whole thing is simply a business transaction from the bank/finance companies' point of view - there is no moral aspect to it.

Also, if a Trust Deed does become protected then it means that your creditors, or the majority of them at least, have agreed to your proposals. It's hardly as though you are pulling a fast one if you are getting their agreement first!

Kevin,
I appreciate the morals are only on the side of the debtor! Still I can see that the way of the trust deed maybe the best for us as a family to sort things and move on, having paid 5 years on a DMP we have definitely tried!
It's just nice to hear the positives of a trust deed when all we've heard from some is how bad an idea it is!

Drew

Hi Drew,

I think with anything in life and any kind of product there will always be people there to knock and bash it.

There will be people who have had a bad and negative experience of a Trust Deed but for the vast majority of people (thousands per year) a Trust Deed is one of the best decisions they have made to try and deal with their debts in a manageable way and at the same time pay back what they can afford and what is acceptable to creditors. You should be able to find the positive reviews on the forum from people who have been happy with a Trust Deed.

As you've said you need to consider what is best for your and the family. Having a young family myself I can completely understand and agree with this and I'm sure others on the forum will be the same.

Like we always tell people, make sure you do your own research, look for reviews on the forum and have a list of questions and concerns that you have for your advisor. If you are happy and comfortable to proceed then make sure you receive everything in writing with regards to exactly how your Trust Deed will work. This should ensure that there aren't any problems later on down the line.

Normally after sitting down with an advisor to discuss things that's when people start to feel a little better about things.

Hi Drew

I am one of the lucky ones that has finished my TD.

I can understand your concerns re your credit rating but from some posts on the forum, credit ratings seem to differ dramatically from company to company. I read that someone was six months out of their TD and got finance for a car, another person was two years out of their TD and the finance company wouldn't entertain them!

Your TD stays on your credit file rating for six years. Your TD lasts four years, therefore it is only two years for it to drop off your credit file - which isn't a long time in the grand scheme of things.

If you are considering going down the TD route (or sequestration) make sure you get EVERYTHING in writing. No matter how stupid the question is, make sure you get a written response.

Meet with a few advisers, the ones on this forum are brill - give great advice, usually quick to answer questions/allay fears on the forum, but meet with a few and go with the one you feel most comfortable with. They are in your life for four years at least!

Re wanting to pay off all the debt - I felt like that but when reality smacked me in the face I realised that there was no way I could sustain a DMP for the time frame I was given. So I sucked it up and entered a TD. It was the best decision for me, I could sleep at night, not worry about the post, not worry about phone calls, or people coming to my home.

I hope you come to a decision that benefits your family.

Online forums (fora?) do tend to attract a higher proportion of people who have had some kind of problem unfortunately, so can give a distorted view.

We do though also hear from many people like Neverendingstory, who have found that their experience of entering a Trust Deed has been very positive. In reality I am sure that the vast majority of people fall into this category.

Yes I can see the relief that would come once things are under way. I received a letter this morning from a bet collection company saying they will be calling around the house within the next week to see about settlement. Should I contact them or leave for my trustee when I get set up. Are they likely to call or is just a threat?

Drew

Hello Drew.

Letters like this are often sent out to try to capture people's attention sufficiently for contact to be established.

It's not impossible that someone might call around, but unless the matter has already been through court any such visitor has absolutely no authority or powers whatsoever. You could ignore them, smile sweetly, or offer them a nice cup of tea!

You might want to give them a quick call to let them know that debt proposals are currently being arranged with a professional. You'll usually be provided with a little "breathing space" then. It will certainly make a visit much less likely.

thanks TD,

I had a call tonight from another company re: trust deeds and they were shocked that any company would suggest a TD at such a low monthly payment as £150, they said it is minimum £100 per person and even that is unusual? is this true? They suggested that the company may have offered this to reel us in and then up the payments later. I understand that contributions can expect to go up if wages increase etc but if from the outset we are told £150 and despite being a reputable company, it is rejected by creditors, can we negotiate another payment or is that our only chance?

drew

Hi Drew, if you have any doubts, have a look about on the forum to see if there's anything to suggest that your proposed company has any history of doing this. Also, if you ask the company you plan to use about this, I'm sure the will explain what can and can't happen. If you feel that it's too good to be true and you can't get things in writing, I'd try another company. Don't be pressured into anything. It's doubtful that any proposal will be rejected as the advisors make sure they meet the required acceptance criteria.

ally

thanks Ally,

the company seem legit, have checked their reviews on Trustpilot etc. Key is definitely to get something in writing. Although nothing is certain until the creditors reply! If only I could go back and tell my young self don't do it!!

drew

I know that feeling lol. It's serves a valuable lesson tho 🙂

Hi Drew.

Mark seemed to think a higher contribution might be necessary in an earlier post.

A couple of key points:

1 - Whatever anyone says, don't commit to a payment you're not sure you can afford. You'll just be swapping one problem for another.

2 - Don't try to fit your disposable income to a particular debt solution. Work out how much you can truly afford and then see which options are open to you.

3 - Decent trust deed providers know to a high degree of certainty whether your proposals will be acceptable to major creditors. Quiz them on the detail of that to test their knowledge and the credibility of what they're telling you.

Hi Drew

In general the vast majority of creditors (90%+.)are dealt with by one of 2 companies who work to a set criteria.

If your individual contributions x 48 can pay 10% of the total individual debt plus the costs & outlays of the trust deed ( outlays are £500-£700) then it will work. If not then the firm do not know the criteria to get it accepted or they are looking at something else entirely.

Mark

Hi Drew,

The most important thing is to only pay what you can reasonably afford to pay per month to a plan. Over extending yourself will only lead to problems later on down the line as TDA has pointed out.

A good knowledgable advisor should be able to tell you the likelihood of if your payment per month being accepted by creditors before you commit to the Trust Deed. If someone does go wrong with the proposal there is the opportunity to negotiate with the creditors.