I'm new and would like advice please

samq

Hello,

My husband and I have £20,000 of debt - £10,000 of that is in a joint loan and the remainder being on personal credit cards. We both have agreed that we need to do something about it.

I rang the Debt Advisory Trust earlier and went through all the finances and the first thing they recommended was a Trust Deed (as we live in Scotland). I was quite surprised that they recommended this as the first option especially as I'm quite suspicious of them (mainly because I don't know a lot about them). Because this Debt Advisory Trust was based in England they have arranged for someone to call me on Monday regarding a Trust Deed and therefore I want to be armed with knowledge!

I then looked at the moneyscotland website and they seemed to be much more proactive in supporting the DAS which makes me suspicious of the Debt Advisory Trusts' motives.

Can anyone answer the following questions for me please?

1) We are tenants rather than homeowners, would this be acceptable for either a Trust Deed or a DAS?
2) We don't have an expensive car and as we're very rural we need it! Would we be forced to sell it?
3) As we have a joint loan and then personal debts too, would we need to both take out a DAS or Trust Deed in order to make sure that the join loan is covered?
4) Can anyone point me in the right direction on who I ought to be speaking to?

I've decided I'm going to call the CCCS and National Debtline on Monday as I don't really want to deal with a commercial company and want to try and get impartial advice but I would really appreciate anyone's advice or tips.

Thankyou for reading this far and thanks in advance for the help

SouthCoast

Advice from CAB on debt in Scotland can be found here:


http://www.adviceguide.org.uk/scotland/life/debt_scotland/debt_fact_sheets_scotland.htm

Charco_2

There's nothing wrong with a commercial company... if CCCS decided that a TD was your best option, they'd be passing you on to a commercial company to do one for you! In Eng and Wales they pass IVAs to a commercial company (CCCSVA) and in N Ireland they pass IVAs to to a separate commercial company.

Did Britain suddenly become a communist country while i was sleeping? Is a company making a profit on a service they provide suddenly now frowned upon?

I encourage you to speak to as many people as you can, the more information you can get the better equipped you'll be to make the decisions for yourself!

1. You can be a tenant for either the DAS or a TD
2. Not necessarily forced to sell the car, if it's considered too expensive you may be required to downsize it and put any profit from the sale into an arrangement!
3. With joint debts, when one person goes into a formal debt solution the creditor has the right to pursue the other for the remainder of the debt so you may be best to both enter into arrangements.
4. Your local Money Advice centre. Most council areas have one - it's like the CAB but more concentrated on money issues

weakwilled

I am also new to this forum and really need advice on Trust Deeds. My husband and I have debts of approx £27,000 and I have finally decided enough is enough! I tried to get a debt consolidation loan with a view to repaying all debts in about 5 years. We pay all loans and credit cards, amounting to £750 per month, however this amount leaves us very little disposable income, which means we use the credit cards and so it goes on! We can't get the loan as we don't have enough equity on the house so have been given 2 different bits of advice. 1st was a debt consolidation plan and I await some paperwork to explain this further although initial feedback has suggested it is not as formal and legally binding as the 2nd option of a trust deed. We have always had an excellent credit rating and I am worried the trust deed may affect future mortgage applications. And I am also concerned re who I should get to arrange and manage this if we go for it as there seems to be some confusion over costs and who should be approached and who should be avoided! My head is bursting with bits and pieces of information! Please advise!

Charco_2

I'd be careful about the Debt CONsolidation Plan, this seems to be mis-selling a Debt Management Plan and has been mentioned a couple of times on this board recently. They talk about it as a consolidation but the only similarity is that you end up with "one affordably monthly repayment" - yippee!

Meanwhile your credit rating gets shot all to hell because you're defaulting on loans and debts. In a real consolidation, you'd be getting a loan to pay off all those debts and then paying back one new large loan. In a DMP, a company steps in as a buffer between you and your creditors to deal with your debts on your behalf. You agree a monthly payment and they disperse it among your creditors. They also attempt to freeze interest and charges.

I'm not saying there's anything wrong with a DMP - it works in the right situations (more as a short term solution to give you a breather from your creditors while you sort out an alternative payment), but if it's a DMP dont mis-sell it as a consolidation!

As for a Trust Deed, yes it will affect your future mortgage applications (for six years anyway) but can you really see yourself getting out of debt without affecting your credit rating some time soon anyway!?

Who to go to? That's the million dollar question. All the IPs will be regulated by the same bodies and so will be pretty much the same.

weakwilled

Thank you! You are right re where would my credit rating be in 6 years if I don't take action and I would still owe all that money and still be having sleepless nights! I know I need to take the next step, but I am scared! Wish us luck!

Charco_2

i'm not saying rush in to anything either, do your research, ask questions, you're going to be in the solution you choose for years so what's another week deciding. Just as long as YOU'RE sure you're making the right choice when you make your choice that's all that matters. Better to take an extra week of hassling phonecalls than to be stuck in a debt solution for years that you dont like or doesn't suit you. Or that might fail and set you back... Not trying to scare you either!