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Trust Deed Advice!!

Steff90
Posts: 26 Forumite
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
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
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Comments
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https://www.trust-deed.co.uk/forum/forum.asp?FORUM_ID=1 is the best place for advice on trust deeds0
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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.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
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 :T0 -
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 readAround 20K starting point :eek::eek::eek::eek: Will get there eventually :T0
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