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Trust Deed Advice!!

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
4 replies 1.4K views
Steff90Steff90 Forumite
26 posts
edited 30 November -1 at 1:00AM in Debt-Free Wannabe
Hi everyone :j

I posted in another thread but I think it was getting overlooked!

After adjusting my income and expenditure sheets with Payplan the advisor has recommended I enter a Trust Deed.

I have been trawling the internet for advice/experiences but not really getting anywhere so thought I'd jump back to DFW for advice!

Has anyone been in a trust deed/currently in one?
One of my worries is my car. I have my car on PCP finance which I have only just taken out in May this year and ends in 4 years time (May 2022). My question is when this ends, there is usually the option to pay the balloon payment which I most likely won't be able to pay, or take out a new PCP deal. I'm worrying now as even if I do just hand the car back I'll be left carless and this is something I rely on for work and getting my son to school.
Has anyone ever taken car finance out while being in a trust deed? I'll still be in one when my car finance ends if I do decide to go ahead with a TD.

Also - if I do decide to go ahead with a TD, can I tell Payplan I don't want this to start until another 3/4 months? I know people can hold off a DMP for a few months while they build up an emergency fund, but can I also do this with a trust deed?

As always thanks for any advice. I'm not taking the possibility of a trust deed lightly believe me! But since it's been recommended to me by Payplan I am doing my research to make sure it's the right decision! And I trust the advice I receive on this forum
Around 20K starting point :eek::eek::eek::eek: Will get there eventually :T

Replies

  • edited 16 September 2018 at 11:17AM
    sourcratessourcrates Forumite, Board Guide
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    edited 16 September 2018 at 11:17AM
    Hi,

    How much is the car worth ?

    As you can only have a vehicle worth £3000 or less whilst in a trust deed, anything over that amount is considered to be an asset.

    Your only option may be to deal with this before entering the TD, as I doubt the balloon payment would be an allowed expense to budget for either, maybe try and save as much as possible by stopping your creditor payments, buy something cheaper, as I suspect your current car is worth over 3 grand.

    If that’s the case it would most likely have to be defaulted and repossessed, with the remainder of any shortfall, going into the TD.
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  • sourcrates wrote: »
    Hi,

    How much is the car worth ?

    As you can only have a vehicle worth £3000 or less whilst in a trust deed, anything over that amount is considered to be an asset.

    Your only option may be to deal with this before entering the TD, as I doubt the balloon payment would be an allowed expense to budget for either, maybe try and save as much as possible by stopping your creditor payments, buy something cheaper, as I suspect your current car is worth over 3 grand.

    If that’s the case it would most likely have to be defaulted and repossessed, with the remainder of any shortfall, going into the TD.


    Hi SourCrates


    Thanks for your reply.
    I believe my balloon payment at the end of my finance plan is around just over £3k. I don't have the exact figure to hand.
    In my response from Payplan after entering all my income/expenditure the woman did recommend a Trust Deed due to me having no assets?
    I am going to speak with her about this on Thursday when she calls me back to decide which route I want to go down.
    Around 20K starting point :eek::eek::eek::eek: Will get there eventually :T
  • Fiona_CW wrote: »
    https://www.trust-deed.co.uk/forum/forum.asp?FORUM_ID=1 is the best place for advice on trust deeds


    Thank you - I will have a read :)
    Around 20K starting point :eek::eek::eek::eek: Will get there eventually :T
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