Hi SkintAlly.

A trust deed company has to offer a certain level of dividend (the percentage return on the debt owing) to meet the guidance issued to them.

In some circumstances the equation between the debt total, the monthly contribution and the Trustee fees can mean that a trust deed is not viable unless it runs for longer than the usual 36 months.

It's obviously then up to the individual whether to accept that and proceed.

It's never a good idea to commit to a trust deed payment that you doubt is affordable. I'd therefore suggest a slightly longer trust deed is a small price to pay for knowing you'll be able to manage financially during the term.

Having said that, in most instances a 36 month term does seem to be available for most individuals. It's all down to the unique circumstances of each case though.

Thanks for that TDA, that's a good point about the level of dividend. Just checking through the different payments and terms, and they all seem to add up to roughly the same total. I guess I was just concerned that the additional 6 months wasn't simply to contribute towards a bigger fee. I take it there is noway of comparing this?

Thanks for the help

Different trust deed providers will charge different amounts in fees SkintAlly, it's just like any other business I suppose.

There's nothing to stop people approaching more than one provider and enquiring about proposed fees. We encourage people to take an interest in the subject of fees as it can affect the term of the trust deed and/or creditor willingness to allow it to become protected.