Do i get myself Trusted

geev6

Hi there new to the site and have been taken in by how helpful you all are. I have got myself into a wee bit of debt with one credit card company and its went to the debt collectors (three in total so far), i went to my local Citizen Advice Bureau and after a while they had an insolvency administrator come out to see me about getting myself trusted. Now i asked for this myself to happen, but now coming across this site im wondering if there is any other way i can get the debt paid off without having to resolve it buy not being able to get credit for 6 years.
This would cause difficulties if i want to buy a house or get a new car. I would also like more info about being trusted. My Debt is £4500 but with me being trusted i was going to add my other credit card aswell which is at £2500so after 3 years both debts will be hopefully cleared.
I hope you can advise me in the right direction. Thanks in advance.
Gee

chica_fi

I think you're talking about going Trust Deed, which is the Scottish equivalent of IVA? If you post a SoA we'll be able to see whether you've got the space in your monthly budget to be able to pay this off yourself. You're right, a Trust Deed does affect your credit rating and will make it very difficult to get a mortgage etc later on - and it's hard enough getting on the scottish property ladder without making it worse for yourself!! See southernscousers sticky post at the top of this forum on making your SoA.

Well done on making the first step of dealing with this debt!

geev6

chica_fi wrote: »

I think you're talking about going Trust Deed, which is the Scottish equivalent of Trust Deed? If you post a SoA we'll be able to see whether you've got the space in your monthly budget to be able to pay this off yourself. You're right, a Trust Deed does affect your credit rating and will make it very difficult to get a mortgage etc later on - and it's hard enough getting on the scottish property ladder without making it worse for yourself!! See southernscousers sticky post at the top of this forum on making your SoA.

Well done on making the first step of dealing with this debt!

Well i got my SoA sorted as to the best of my knowledge thanks for the help chica fi. All the help i could get will be appreciated.

Monthly Incomings:

My salary - £715
Partners salary - £930
Benefits - £468

Total - £2113

Monthly Outgoings:

Mortgage/Rent - £525
Council Tax - £180
Gas/Electric - £60
TV License - £11.37
Sky £43.50
Phone & Broadband - £25
Food - £200
Car Insurance - £49.64
Petrol - £160
Nursery Fees - £437.50
Mobile (Me) - £35
Mobile (Partner) - £20
Contents Insurance - £9


Total: £1756.01

RBS Credit Card – Balance £2,483.40 (limit £2,500) APR 17.5%

MBNA Credit Card – Balance £4,256.03 Frozen APR 0.0% Passed to debt collectors

Three Mobile – Balance £173.58 Frozen APR 0.0% Passed to debt collectors

Tashja

Hi hun

A few bits you can do to help yourslef:-

Get rid of Sky !! Get a freeview box instead or manage with normal channels - no TV now is more important then the damage that is going to be done to your credit by a Trust Deed.

Look on the O/s board and you should be able to shave at least £50 or so off your shopping bill.

Are your Mobile phoines PAYG or contract. Do you really need them ???

Are you claiming all the benefits you are entitled to - WFTC, CTC, etc. Also have you looked into WFTC helping you with Nursery fees. How old is your little one - if 3+ they should be getting some free nursery time.

Your car insurance seems a bit onthe high side - have you checked this is the best you can get ??

Last one from me - Is there any way you can cut your petrol down by walking places or making less journeys ???

Hope this helps and I am sure you can do this without getting a Trust Deed.

T xx

geev6

Tashja wrote: »

Hi hun

A few bits you can do to help yourslef:-

Get rid of Sky !! Get a freeview box instead or manage with normal channels - no TV now is more important then the damage that is going to be done to your credit by a Trust Deed.

Look on the O/s board and you should be able to shave at least £50 or so off your shopping bill.

Are your Mobile phoines PAYG or contract. Do you really need them ???

Are you claiming all the benefits you are entitled to - WFTC, CTC, etc. Also have you looked into WFTC helping you with Nursery fees. How old is your little one - if 3+ they should be getting some free nursery time.

Your car insurance seems a bit onthe high side - have you checked this is the best you can get ??

Last one from me - Is there any way you can cut your petrol down by walking places or making less journeys ???

Hope this helps and I am sure you can do this without getting a Trust Deed.

T xx

Thanks Tashja

Can't get Freeview in my area and the Tv reception isnt to good where i am for normal telly, in a valley so thats why i have the sky installed. (Will be downgrading it as the football season is ending soon)

Mobile phones are on contract and as soon as the contracts end we will be going onto pay as you go sims. Also will be getting a company phone so that will save me money.

We are claiming all the benefits we can get and my daughter is just turning 2 in the next Week.

Car Insurance is High because of my penalty points and that i have only 3 years NCB, i got it through confused website so it is one of the cheapest.

And last answer is the petrol is used for me commuting to my workplace, i work alot on building sites which can be difficult to use public transport to get to the area. (I am thinking of getting a little moped and using that instead).

I have the insolvcency administrator coming to me tomorrow night and really don't want to waste the guys time, if im able to get myself out of this debt myself. :T Gee

medman

Hi Geev

If you cancel Sky, the free channels continue to be received through the satellite system so reception is not an issue. This is what we do and it's no problem and you don't need to shell out for a freeview box. This only applies if your contract period with Sky has elapsed, normally 12 months.

Your food bill looks high defiantly worth a look around the Money Saving Old Style board
http://forums.moneysavingexpert.com/forumdisplay.html?f=33

Good Luck

MM

Tashja

Just a thought

If you can cancell Sky and reduce your food bill this could save you £100 next month. Why don't you then phone the Debt collecting Agency who have the Three Mobile debt and offer them £100.00 F&F settlement of that debt.

You are then 1 down 2 to go and I think this will put you in a really good frame of mind for paying off the rest.

You then need to work at the RBS card as this is gaining interest. Have you spoken to them about reducing the % on this card - if you don't ask you don't get !!!

I still think you can do this without having to go to a Trust.

T xx

chica_fi

Some good advice here gee, should be enough to get you started. If your daughter is coming up for 2 do you have clothes / toys etc that you could ebay / carboot? That would probably magic up a hundred or so, depending on what's lying around the house, making a fair dent in at least one of the two cc bills. If 3 accept a full&final settlement of £100 then you'd be on your way to bringing down bills 2 & 3.

The other thing to look at is income - yours looks to be round about the minimum wage, is there any prospect of better paid jobs around where you are (they're always building new things in edinburgh!) or potentially advertising round your area for odd jobs to bring in the odd bit extra cash that could go towards bringing down these two?

I know that the debt seems like a horrible amount just now but relatively speaking it could be so much worse and if you can possibly avoid going trust deed then some extra hard work just now saves your credit rating for the future.

One last thing - do you have bank charges you could claim back? If you've paid any in the last five years you could claim most of them back and that would be another whack off your outstandings.

Phew - long! :rolleyes:

honey_gem

HI there,

With the amount of debt you have you would not be eligible to enter into a Trust Deed. Like an IVA someone needs to be at least £15,000 debt before a Trust Deed will be thought about. A Debt Management Plan may be more suitable for you?

I hope this is helpful

geev6

Hey yawl big update on me debt ridding, i have spoken to Three and its only £93.58 that i owe, im going to be paying them £10 a month to pay this off. Also spoken to MBNA and they are happy that im going to be paying up £70 p.m. to them. But spoke to the RBS and they said they could not freeze the interest on credit card as i have not fallen behind in my payments and also the minimum payment im wishing to pay them is more than my actual minimum payment (they will only freeze the account if i miss three payments and a further one after this, which isnt really that good :mad: ). which is again the £70 p.m. payment. So i have started the ball rolling should be debt free before 2011 whohooo.
Answers to the job front is im actually a trainee engineer (adult student ) and my wages are reflecting at what stage i am at the moment, im doing my first year at college which is almost over so hoping for a little incentive after june, my wages thus will be going up each year not so much til i graduate but in 3 years time when i have my hnc (think positive i am) i will be earning a lot more and will be paying more to my debts. Thats the idea though. And as for my daughters toys etc we are in the process of sorting out whats she plays with and what she is getting to old for so they will be up on ebay soon;) (great minds think alike).
If i get my bank charges they will be paid into the RBS c/c as that still has its interest on it, fingers crossed i should be getting this soon.
And lastly, god i can gibber on, thanks to all that have gave me suggestions and also the support into dealing with my debt problems. Without you guys i would still be in a rut. THANK YOU :A

Gee :dance: x

Tashja

Big (((hugs))) to you !!!

You sound like you are doing really well and you have saved your credit rating for the future !!! Sometimes things aren't as bad as they seem and it just takes an outside perspective

You should be able to do this before 2011 too which is fab.

T xx