Frequently Asked Questions
It seems like there are two different trust deeds; those that are ‘protected’ and those that aren’t. I’m struggling to understand the difference between the two; obviously having protection is what I want… I don’t want angry debt collectors knocking at my door or ringing me every day. What does a protected trust deed mean?
I don’t like the sound of declaring myself bankrupt and would much rather prefer entering into a trust deed agreement but I’m concerned about the set-up costs? I have large personal debts and couldn’t afford to pay to start a debt management programme.
I have huge personal debts after my self-employed business ran into difficulties two years ago. I have been looking into an ‘official’ debt management plan as I am constantly fighting to keep my head above water and I’m no nearer to clearing these debts despite monthly repayments. I have come across IVAs and Trust Deeds but not sure on the differences between the two and what would suit me best?
I’ve been to Citizens’ Advice but I don’t believe they can help me with my level of debt which is around £20,000 on credit cards, car finance, payday loans, and a standard loan. Applying for a trust deed has been on my mind for some time but I’m concerned that all creditors may not agree to my trust deed? What if one of them doesn’t agree?
I took out a payday loan last year but wasn’t able to repay it on time and then I took out another to help with Christmas. I buried my head in the sand a bit and they have spiralled out of control and each month the interest is accruing and I can’t afford to pay them off. It’s really stressing me out and I’ve ended up missing credit card payments so I could make payday loan payments – it’s a never ending cycle and I feel like I don’t even want to answer the phone. I’ve been told I should consider consolidating all my debts as quickly as possible – how long does it take to set up a trust deed?
I have recently been made redundant and I’m not entitled to a decent redundancy package as I’ve not been with the company very long. I am now worried that I won’t be able to keep up with my trust deed payments of £250 a month. What would the consequences be if I missed a payment despite my circumstances clearly changing?
I am a single mother of two children with a number of debts and loans, including some spiralling payday loans that are stressing me out. I have looked into debt management plans and trust deeds and it seems as though the trust deed is the best option but I’m not sure whether I can consolidate all my debts into one monthly payment? Can loans be included in this?
“I’m getting to the stage where it feels like my debts will never go away and want to pursue a trust deed as a more manageable way of repaying creditors. My biggest concern, however, is that my credit rating will be damaged in the long-term and affect me when applying for credit to finance a new car or when it comes to applying for a mortgage?”