Welcome to the forum LH2016.

It's true to say that your expenditure will be limited during a trust deed.

However, allowances will be made to cover your bills and reasonable other expenditure.

The aim is to make sure that you're OK, can complete your trust deed, and get a fresh financial start.

How much do your debts add up to now?

Hi LH2016 and welcome to the forum.

I can understand your concerns as many people who are in financial difficulty and are looking at a Trust Deed as a way to help have the same one.

When it comes to all three of the solutions, a Trust Deed, Debt Arrangement Scheme or Sequestration we need to use the Common Financial Statement. These are a set of guideline figures which tell us how much you can spend on four main categories such as Household, Travel, Telephone and then all other Expenditure. Outside these you also have a category called Essential Expenditure which covers things like rent/mortgage, electricity/gas, car finance, insurances etc.

When it comes to looking at your budget, a good Expert advisor will work through a very thorough income and expenditure to ensure that you are able to pay all of your bills, have enough money to live on and then left over is what you would pay per month. One of the most important things is to ensure that your payment is affordable and sustainable. This is why its key to speak with an Expert about your situation. Kevin or I the two Experts on be forum would be happy to help you with this.

Many people say that the first couple of months of a Trust Deed can be a little tricky but once the are able to work with their budget it becomes easier. The vast majority of people who successfully complete a Trust Deed say it's a very effective way of repaying what they can afford and regaining control over their finances.

As TDA has already asked, can you tell us how much your debts total and if you have any assets.

Also, how much do you feel you could afford to pay per month to a Trust Deed of you didn't have all of your debts to pay and just your living costs.

The positive thing is that you have solutions to help you deal with your debts.

Thank you both for your replies. My current debts, I believe, stand at around £35K. A mix of a loan, credit cards and OD. It would be good to speak with someone. I could probably pay around £200 - £250 but to be honest, would rather not guess and properly work it out. There was one other query I had. I have booked flights on one of the credit cards for a trip in December. What will happen to these flights if I was to go ahead with a TD as the credit card will be part of my TD? Thanks again for your help.

Sorry David, I forgot to add that I have no assets. I don't have any defaults either as pay the minimum via DD each month.

Hi LH2016,

Thanks for sharing some more information with us.

There should be no issues with the flights as these are already paid for but it could be a factor in if that particular creditor is prepared to accept/reject your Trust Deed. It's something you can discuss in more detail with the Expert you choose to help with advice. If you wish to speak with Kevin or I you can click the contact us tab underneath our posts and we can take it from there.

It does look like a Trust Deed could be one of the suitable solutions to help you deal with the £35,000 of debts and potentially be debt free in 48 months.

Hi LH2016

A Trust Deed may well be a good option for you. It is a route that is well suited to people that have large unmanageable debts which they can afford to pay something towards and who have little/no assets.

That's not to say it would be your only option. An experienced adviser would talk you through the various options in order that you can decide for yourself which most suits you. However, unless your circumstances are likely to change significantly, then trying to repay the debts in full would not seem very attractive and possibly not easily viable as I would take well over 10 years.

The benefit of a Trust Deed is that it brings this period down to a much more realistic timeframe. As long as it is based upon a realistic budget then it should give you a shorter-term solution with manageable payments.

Thanks so much for you all getting back to me. It would be good to speak with someone and look into this - need to get myself working towards being solvent once again and managing a regular affordable sum that doesn't leave me with nothing each month.

Not a problem LH2016, I have a feeling you will feel a lot better about things after speaking to myself or David. Please be assured that we are here to help and advise and that you would be free to make your own decision at your own pace.

Hi, LH2016 I wished I had found this forum before as I went into to a debt management plan and surprise , surprise they went bust and I lost over I year's money that I had paid into and they were a hopeless company. Found this forum and I declared myself Bankrupt, I paid back 3 years money and 2 years money on my equity on my house, they review your monthly payments every 6 months and now I have finished my payments this week. So use the forum and im sure you will receive excellent advice in what to do , good luck

Thanks Graham - it is good to hear how the forum has helped others. I have now spoken with a debt adviser and first steps taken... Feels very strange but I believe there is finally light at the end of the tunnel. Hopefully get things finalised this week with an expert and take the first steps forward to a massive weight off my shoulders!

That's wonderful LH2016.

I think those first steps are probably the hardest ones to take.

Hopefully your sense of relief continues to grow from here.