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Scottish Trust Deed Forum
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Topic starter
29/07/2013 11:52 am
Hi everyone, I am new to this forum and have been reading through a number of the posts with great interest.
In September 2012, I set up a DMP with CCCS, now known as Stepchange. At the time I was struggling and in roughly £9500 of debt including payday loans, credit cards and overdrafts and just wanted an option of paying a monthly sum and getting myself on track.
It has been nearly a year since I set the DMP up, and I am in a worse position now than I was when I started. The total amount of debt I now owe is up at approximately £12,000 as, despite numerous letters including recorded delivery (sent nearly every month!), the payday loan firms have kept increasing the interest on the debt owed. One company, who i owed £595 to, is now standing at £3400. It is only recently that my bank, Lloyds TSB, have finally responded to my numerous contact attempts and has agreed that I could freeze my overdraft account - but by this point it was nearly £400 over the agreed limit.
I have paid nearly £2000 towards my debts this last year, but feel like I am getting nowhere and still continue to receive threatening letters and phone calls on a daily basis. It is getting me to the point where I feel there is no way out and things will never get any better.
What other options are open to me? I also have finance on a car which isn't included in my DMP which I pay every month. Since starting my DMP I have missed no payments and have missed no other payments (car, mobile phone bill etc).
Any help would greatly appreciated as I am stuck in a rutt!
Many thanks in advance,
Paul
29/07/2013 12:23 pm
Hi Paul0511 and welcome to the forum,
It sounds like you took some positive steps last year to deal with you debts but this hasn't worked out as you would have hoped for.
Do you know if it's a Debt Management Plan that you are on or a Debt Arrangement Scheme? Also, how much are you currently payment to Stepchange at the moment?
An alternative option to consider could be a Trust Deed or if you are on a DMP, you could consider a DAS which legally has the power to freeze interest and charges which would effectively cap your debt.
In relation to your car, a Trust Deed can have different implications for this. Ideally we need to know what type of agreement the finance is, the value of the car and how much is outstanding. Normally however cars aren't a problem in Trust Deeds.
The best thing to do is sit down face to face with an advisor, discuss your full financial situation and the options which you would have available and from that you can decide which option you prefer.
One of the main things to do is make sure you get everything in writing when it comes to payments, length of time and what will happen with any assets i.e. your car.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
29/07/2013 12:34 pm
Hi David, thank you for replying.
It is a DMP I am on and pay £150 to Stepchange per month and have been paying extra to my overdraft account and credit cards as and when I have any extra money.
My car is on Hire Purchase and have 2 years left on this agreement with just over £5000 left to pay on it.
I went to my local CAB last year when I was trying to find out my best course of action, but didn't feel I received any real help and was left to myself to find Stepchange.
Where or who would I be best to contact in regards to a trust deed/DAS? I would really appreciate the opportunity to sit down and speak to someone face to face.
Again, thank you so much for your reply.
29/07/2013 12:39 pm
Hello Paul0511 and welcome.
This site recommends the four firms represented here by Mark, Kevin, David and Rob.
Each offers face to face meetings which we believe are (almost) essential for anyone considering entering into a trust deed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
29/07/2013 12:44 pm
Hi TDA and thank you!
That is great, I will contact one of them directly.
Thank you for all your help! 🙂
29/07/2013 1:10 pm
Hi Paul,
By the sounds of things you do have options available. Sometimes the one problem can be surplus money to pay to a plan each month. If you don't have this then it can limit what options you have available.
A good advisor will take the time with you to work through a very thorough income and expenditure budget to ensure that they payment is affordable.
The benefit with a Trust Deed or DAS is that all if your debts can be put into this (excluding the HP if you want to keep the car) and it saves you having to pay money to different organisations which is what you are still doing at the moment. It's one payment per month.
I think face to face meetings really do help and in most cases would say it's essential.
David is not currently posting in the Trust-Deed.co.uk forum
29/07/2013 3:04 pm
Did Stepchange not advise you of the Debt Arrangement Scheme or Protected Trust Deed options, Paul?
I'm guessing, but maybe they thought a trust deed wouldn't be suitable because of your car. In reality having a car on HP is rarely a problem and can usually be accommodated in a trust deed. Which finance company is the HP with? There are one or two out there that can be problematic if a trust deed is signed, but most aren't.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
