Hi jb70

It is something to run last your trustee, however in theory I don't see any problems with this, although you may end up with a less reliable car and paying more to the trust deed once the repayment has finished.

Mark

As you say - your creditors will be better off if you can afford to pay more so I can't see your Trustee having a problem with this plan.

I'm not sure I quite follow why you want to terminate the car agreement - is it just so that you can pay more to your debts? If so, then good for you, I doubt there are many that would seek to do the same unless absolutely necessary.

Thanks for the replies, Mark & Kevin. Tbh the car I have has never been a sensible choice - think it was a last gasp boy racer thing going on 🙂 And it is at the age where it is only going to need more work done. I will be writing off over 6k in interest and negative equity from the previous car before this one, so to me its a no brainer.

It will also allow us to pay a bit more to our Trust Deed and maybe even leave us a wee bit extra to get by, if our Trustee is understanding enough 🙂

Hi jb70

It seems like a sensible option as you suggest as you won't be left with a car needing future repairs if you stick to the current one and I don't see this being a problem as everyone benefits from it.

Keep us posted and let us know how you get on.

Mark

Hi Mark, spoke to Trustee yesterday and everything seems fine to go ahead. Was due my annual review, so that will be carried out next month with the payments entered for repaying the in-laws in place of the payments for the car HP. Was told my contribution will probably increase as soon as I stop paying the car HP, which confused me, as I will still be paying my in-laws back that money for 6 months or so, but will cross that bridge when it comes up 🙂

Thanks again, and will keep you all posted.

Hi jb70

Hopefully it will work out and the trustee will take account of the ongoing payment for the new car.

As you mentioned earlier, it's a win win situation once the new car payments come to an end.

Mark

Well the car goes back on Saturday, but I have over £300 in arrears from a missed payment and interest (even though I paid over the halfway sum), so this will be getting passed onto a collection agency, as I have no way of paying this in a lump sum.

So the next bit of advice I am looking for is what do I do about this? Do I arrange a small repayment amount or do I put them in touch with the Trustee?

As you will all know, our finances are stretched to the limit paying the PTD, so I dont know where we will find the extra to pay this collection company.

Thanks for any further advice.

Hi jb70.

I think it might be relevant when this HP contract was taken out.

Presumably this was before your trust deed was signed?

Hi jb70

Unfortunately this is a debt which falls outwith the Trust Deed.

The only options I can see are to arrange a repayment schedule with the car company or ask the Trustee if you can reduce the Trust Deed payments for a month or 2 to clear this.

Mark

Yes TDA, the HP was in place when I signed the Trust Deed and Trustee had declared no interest and was happy for me to carry on paying the finance as we needed the car for work etc. Oh, well, just need to work out - hope the collection company are happy with £10 a month 🙂

Hi jb70

Depending on the level of contribution, it may be a better idea to try and reduce this for a month or 2 to clear the HP debt.

Mark

Hi Mark,

At the moment, we are paying £350 per month jointly. So if we were to ask to drop the contribution down for 2 months, this would extend our TD for another couple of months at least on top of the 43 months we have already been quoted? I dont know what would be the best thing to do - at the moment we have another 30 months to go, if we were just to pay this at £10-15 a month, they would both come to an end at the same time. Also, is it easy enough just to approach our case manager to suggest this?

Thanks

John

Hi jb70.

If £10 or £15 a month is affordable there's no harm in proposing that to the company. If you do, make sure they're aware that you're in trust deeds and that your budget is therefore very tight.

If it isn't affordable (or it cannot be negotiated) then there's no issue with asking your case manager whether they can offer you some temporary help.

OK - thanks for that TDA - we should manage it. End of the day, I dont suppose there is much the debt collection agency can do if I am already in a Trust Deed. Will keep you all updated, and thanks again for the readily available advice - makes all the difference knowing I have an outlet here to post on when I am feeling a bit stressed with it all.

Thanks.

John