DPP versus Protected Trust Deed
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Peter_Neal
Posts: 1 Newbie
Hi Everyone,
This is my first post so please be gentle with me! We are currently arranging a Debt Payment Plan (we live in Scotland) with StepChange.
Our total debt is £30k (unsecured credit cards, catalogues and overdraft) and StepChange calculate we have a monthly surplus of £285 to pay to our creditors. However, a close friend with experience of debt issues was surprised we weren't going down the protected trust deed route. We rent our home and have nothing in assets other than a car valued at under £2k which I use to commute.
As it stands, we will be paying into the DPP (if approved) for almost 10 years, whereas I understand a trust deed could be concluded in as little as four years. I also know from lurking here lately that opinions on StepChange's advice are mixed.
Could anyone chime in on whether we would be suitable candidates for a trust deed or not? I should add that as a family we want to repay our debts as fully as possible. However, we also have young children and we don't want our financial mess to affect their living standards well into their teens.
Cheers, Peter
This is my first post so please be gentle with me! We are currently arranging a Debt Payment Plan (we live in Scotland) with StepChange.
Our total debt is £30k (unsecured credit cards, catalogues and overdraft) and StepChange calculate we have a monthly surplus of £285 to pay to our creditors. However, a close friend with experience of debt issues was surprised we weren't going down the protected trust deed route. We rent our home and have nothing in assets other than a car valued at under £2k which I use to commute.
As it stands, we will be paying into the DPP (if approved) for almost 10 years, whereas I understand a trust deed could be concluded in as little as four years. I also know from lurking here lately that opinions on StepChange's advice are mixed.
Could anyone chime in on whether we would be suitable candidates for a trust deed or not? I should add that as a family we want to repay our debts as fully as possible. However, we also have young children and we don't want our financial mess to affect their living standards well into their teens.
Cheers, Peter
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Comments
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Hi I entered a Trust Deed about 6 and a half years ago. It was easy to do. However I have not paid it all up as was injured so off work for a while. I wrote to the company who arranged it for me and they didn't get back to me. I paid by standing order or D/D and amended the amount to smaller when I went back to work part time. At no point did they acknowledge my correspondence, by email or letter. I couldn't go to the office as I had moved away (but they had my new address and I had royal mail forwarding in place). In the past 2 or 3 yrs I have had occasional letters from a different company saying they had taken over my debt but they all stated THIS IS NOT A REQUEST FOR PAYMENT. I waited to get more correspondence as I had wanted to pay this off. Nothing....... Now I finally get a letter from Drydenfairfax (which seems to get a bad press on here) saying I owe over £4K. I had a look on here and decided to take advice and look at my credit scoring on Credit Club - Guess what !! My credit history is all clear - no mention of my owing anything (except my last electricity bill where they overcharged me by over £100 so waiting for that to be recitified ). Does this mean I owe nothing?? That seems to good to be true as I really thought my husband leaving me and no child maintenance had not just screwed up my life but my credit rating too when I couldn't manage on my wages, esp with being off sick. Any advice anyone? Should I ignore the letter from Drydenfairfax? I had perhaps stupidly replied to the first one but don't think I admitted I owed anything. I think I just asked for clarification and to tell them what had happened about Trust Deed ........0
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