Hi heedface,

A Trust Deed can be structured in such a way that payments are small to begin with based on your affordability at that particular point in time and if there is going to be change in your circumstances then you can increase these accordingly. For example, £100 x 4 then £200 x 32 = 36 payments. It's unlikely that you would be able to enter into a Trust Deed now and not start making any payments till January.

What's going to be the change in your circumstances come January that you will be able to afford to pay more?

Also, you may wish to consider the Debt Arrangement Scheme as an alternative option.

I would make sure that whoever you are meeting with next week explains all of your available options and not only the Trust Deed. If you decide to proceed, make sure you get everything in writing i.e. payment amount, timescale and what will happen to any assets that you may have.

Thanks David,

I may be moving house next month so will need the extra to get on my feet there but im sure i could manage £100 a month til Jan then up the payments then,

I've had a couple of calls and looked up some options but the Trust deed seems the best to me as im in a secure Job and the 3 year plan appeals to me.

Thanks

Moving house can have loads of unforeseen costs. I know as I've just moved twice in the last 12 months.

It sounds like you have done some research yourself which is always good. That way you will have an idea of what a Trust Deed is and the questions to ask the advisor.

When you have your face to face meeting next week, make sure they take you through absolutely everything from a Trust Deed, Debt Arrangement Scheme and Sequestration. That way you won't look back if it is the Trust Deed you enter into and think what the other options were. You know about everything.

Do you have any assets?

Is there anything that you'd particularly like to ask the experts on the forum or any of the users about a Trust Deed?

No Assets the house move is an exchange with a fellow council tennant but with 2 young kids need carpets down and the house to be safe for them.

My brother has just finished paying his trust deed so i know that i need to meet all the payments but like i said to him im willing to give up the bar and the bookie for 3 years so i have a clean slate again and can at least have the chance to own a property in the future.

Cheers

Oh there is 1 thing, I was advised to change my debit card so companies im due money to this month cant take the money owed should i contact them to make them aware of this or wait til they contact me?
Thanks

That's understandable heedface and I'm sure you would want to the house to be in a nice condition for moving in with the kids.

It's good that you have the benefit of someone close to you having went through a Trust Deed so will help a little bit with any questions you may have. A lot of the time people think it's too good to be true and can't understand how it works.

If the companies you owe money to (your creditors) have your debt card details for example payday loan companies the they normally use these to take their full balance from your account if you don't make the minimum payment or miss it altogether. You want to try and change your debit card to avoid them being able to deduct money although I'm not sure this is 100% guaranteed to stop them taking any money from you.

If you have debt with the bank that you have your bank account with then you will need to change bank accounts. This is fairly straightforward to do.

As you said, the Trust Deed payment needs to be paid each month and it needs to be something that's affordable for you. A good advisor will be able to work through a thorough income and expenditure to determine this.

A Trust Deed, DAS or Sequestration will all have an impact on your credit rating which will make it difficult to obtain credit/mortgages in the future however not impossible as we have had some positive posts recently about mortgages after a Trust Deed.

Yeah one is a payday loan the other is an 18 month loan from the Cheque Centre I have changed my debit card so they wont have the new details do you recommend i contact them befor the 28th when im due a payment?

Hi heedface.

You should be able to instruct your bank not to make these payments. However, changing the card might be a useful step to make sure the money doesn't get taken. Discuss this with your bank to make sure everything happens as you expect.

I think that you should take advice and make a decision about how you'll deal with your debts before contacting the creditors. It may make a difference to when/whether you do this.

I dont think you can just get the banks to stop these payments TDA. I have known people have to report cards as stolen to stop payments to payday lenders.

PAUL

The Financial Conduct Authority website has an article about 'Continuous Payment Authorities' - which is the posh name for giving a lender your debit card number [:)]

They say that banks DO have to cancel these payments when you ask them to. And they've basically told the banks to sort themselves out on this one.

So if you want to cancel these payments heedface, why not print out a copy of the FCA article, and head down to your bank.

To add to that, should the bank fail to carry out your instruction they should quickly give you your money back.

I think the banks are clear on their responsibilities about this now. A shame it had to happen via regulatory pressure rather than putting their customers first.

Paul - you were absolutely right. I think it's moved on a little for the reason mentioned by candlewick.