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Scottish Trust Deed Forum
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Topic starter
04/11/2012 8:22 am
I am 24, a single parent with two children under 5 and I recently have signed into a trust deed. I was being ignorant before and was ignoring all debts so wasn't paying any arrears to any of the £19,000 that I owed and I am now paying £195 over 4 years.
My concern now is how much my circumstances could change in the next 4 years.
I currently earn £28,000 with a year on year increase of £1,2000 - will this extra just go straight to the trust deed every month or will they recalculate as this increase means my tax credits decreases.
I also rely heavily on tax credits due to the £340 I need to pay for childcare per week but every year my payments go down....would this be taken into account?
I can afford the £195 a month but would hate to think that over the next four year that would continue to rise all the time?
I am also hugely concerned as I was not told about certain debts that cannot form part of the trust deed so I am now being chased for £100 per month at least in tax credits overpayment and current council tax arrears which were not taken into account so I am still clearing debts (if that makes sense?) xx I don't have an extra £150 for this debt...what can I do? x
04/11/2012 11:50 am
Hi missk88
From the information provided it may well be the best option for you. Unfortunately you seem to have been severely let down by the quality of the advice you've received.
Council Tax should be included and, in fact, are one of the best creditors to deal with. You should include the tax credit overpayment although they do have the option to recover this.
Your trustee would hopefully be in a position to clarify any potential increase, however any review should take account of increased income, but also increased expenditure.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
04/11/2012 11:58 am
Hi missk88.
Did the council tax arrears exist when you signed your trust deed?
Did you tell your trust deed firm about them?
There's more information about council tax debt and trust deeds at:
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
05/11/2012 6:17 pm
A lot of the questions you have really should have been explained before you signed up. Rather disappointing that another person hasn't fully understood what's what prior to getting tied into it.
Throughout the trust deed your payment should be based on what you can afford so your payment may go up or down.
Don't think I am having a go because I understand it's very hard to take in all the info you get at the start!!
What firm are you with?
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
