can anyone help

babyblueblue

I ran a lot of debt up 3 years ago and I was struggling to live on what I was left with. I am the main breadwinner in my household, my husband does work, but only for the national minimum wage. I was put in touch with a solicitor who advised me to get a trust deed. So that’s what I did. He added all my outgoing and left me with enough to live on. I had to pay £200 a month to the trust deed for three years then I would be debt free. The trust deed finished in January of this year. I am a waiting a certificate of completion. I then have to send this to Equifax to update my credit record, trouble is I am needing a loan for a new car. My bank turned me down because of my credit scoring. Will I ever be able to get a loan will this stay on my record. Also what will show up on my record once I receive this certificate of completion and send it to Equifax will it state that the items are satisfied or stay there as default. PLEASE HELP

Tracy

CLAPTON

unfortunately i do not know the situation in scotland, but in england you would be unlikely to get a loan as defaults stay on the credit files for 6 years years.
presumably you are now saving 200 per month that you were paying to the trust deed..can you save that towards a cheap car?

RVK2

Having got yourself out of debt why do you want to get back into it again? I agree with Clapton, save up and pay cash using your £200 a month and any cutbacks you can make.

babyblueblue

Hi Clappton thanks for answering my note. It's very difficult at the moment, as I haven't got a lot coming in. I know what you are saying is true and i never want to go down that road again. But the extra money I have been using to send my oldest boy to college. He was turned down for an EMA payment and is only getting his driveling costs, which I suppose is better, the nothing. It is costing me nearly a fiver a day for his dinner etc.

VEE_2

Hi Tracy,

Hope things really start to improve for you now.
My car was actually repossessed a while back after missing just two payments and i was left with a huge shortfall bill for nearly 7k after they 'sold' the car. If there is any way to avoid taking out finance on a car as the previous posters have said i would at all costs. Course, from what you are saying you already know that but if you could possibly use the money saved from the Trust Deed and save for the car it might give you peace of mind and you could remain totally debt free. I understand after 6 years your credit file is cleared, before then i think credit will be difficult. Good luck with whatever you decide but if you do decide to get a loan/car credit i urge you to avoid companies that specialise in 'poor credit' customers. From what i understand the interest rates and practices if you get into difficulty are really terrible.

I hope you don't mind my asking but i am considering applying for a Trust Deed myself as an alternative to bankruptcy and wondered how you found the whole process/ if you have any advice?

Thanks very much

Vee

babyblueblue

Hi Vee, I am sure if you have quite a lot of debt you should go for the Trust Deed. I contacted a solicitor in Glasgow and he put all my debts in to one. He applied for the Trust Deed and got it protected through negotiating with my creditors. He then worked out all my money leaving me with enough to live on. My mortgage, electric, council tax, food money and car maintenance things like that. I then was left with £200, so that was what i put towards my debt every month for three years and now I am debt free and only three-year left to pay on my house. Didn't I do well?

Thank you for answering my question

Tracy

VEE_2

Hi Tracy,

Thanks very much for that. You did indeed do well. I bet it must have really reduced the stress levels having a formal plan in place and being able to see light at the end of the tunnel?

It's really got to be a Trust Deed or Bankruptcy for me, though because of the amount i owe and the payment the CAB have worked out that i can afford to pay i am not sure if it would be approved. I think i would really have to earn more maybe so i think i might be looking at bankruptcy as my only option. I wonder if you have to earn a lot or not owe a lot for a Trust Deed to be accepted?
I guess it's really down to what the creditors would accept but as i understand it fees for a Trust Deed can be really high so the creditors can sometimes not be left with much in the end? I'm also not sure if i apply to have it protected and it fails if i still have to pay fees.

Anyway, thanks very much and it's great to hear of someone who has come through the process and is back on their feet again!

Cheers

Vee

RVK2

babyblueblue wrote:

Hi Clappton thanks for answering my note. It's very difficult at the moment, as I haven't got a lot coming in. I know what you are saying is true and i never want to go down that road again. But the extra money I have been using to send my oldest boy to college. He was turned down for an EMA payment and is only getting his driveling costs, which I suppose is better, the nothing. It is costing me nearly a fiver a day for his dinner etc.

£5 a day for lunch??? Could he take a lunch box, it would be much cheaper...every little helps.