Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By fortuna
#129922 Hi,

I'm 25k in debt to several lenders (O/D's 3 credit cards and 2 loans) I went to the Advice shop and was told a Trust Deed was the answer which I signed on Friday. Since finding this website I'm thinking that a DMS may have been better.

I've just started a job earning 15k ( I also have no assets) and I'll be paying £120 per month to my trust deed and paying off the debt in 3 years which is amazing. My only reservation is that my job is subject to bonuses, and as it is a trainee positon a wage rise and promotion to a position that would earn commision is possible. I was advised that any extra income has to go to my trustee and I'm not allowed any savings or holidays, so what about saving for Christmas? That's half the reason I'm in this mess!

Anyway the main point of my post is that from the little I know about DMS it seems that I would be more in control of my income - ie the trustee won't get every spare penny! Also, how long would the scheme last? It just seems like a bleak few years are ahead with the trust deed!!

Or have blown it anyway as the deed was signed on Monday?

Thanks!!
By wdm
#129995 You've signed a TD and I think you are committed to it. There has been talk of introducing 'cooling off' peroids but don't think we're there yet. Check with your IP.

If all you afford is £120 a month to a £25k debt then a TD would seem your best option though. A debt payment plan would probably last a lot longer.

If you get bonuses and pay rises the the IP will want to increase your payments but not necessarily take the full amount. You can't have a proper savings a/c but you can put a bit of money aside for Christmas in your current a/c so long as it's not excessive. On your income/expenditure form it just needs to go down as miscellaneous or household expenditure or something like that. Holidays are also normally allowed - again, so long as it's not viewed as excessive.

Really however you have to accept that you're going to be debt free in 3 years and the price of that is a lower standard of living that you would like for that period.
By fortuna
#130218 Thanks for your advice. You've put my mnd to rest that I have made the right decision. You mentioned that my IP might not take the full bonus/commission payout. I was made to believe by my IP that all extra income would be taken. Has anyone had any experience with this or where I might find out what my rights are on this matter? Also, when my 6 month review is up, what proof of income expenditure will I have to give?

Thanks for your help on this. For some reason I'm scared to approach financial officals!!
By wdm
#130324 After 6 months they'll ask to see pay slips. They should lalso ook at your bank a/c. They'll also ask you to revise your income and expenditure to reflect any changes. As I mentioned if you can put some money down under household expenditure it won't be queried unless it's unreasonably high. You can't be dishonest but peole normally find that their expenses go up with their income. Search the forum-there's lots of stuff on income and expenditure.

Good luck
By kiltedscot
#130611 i am in a TD and have been for the last year,

I too work in a sales field and earn commission,

Basically, for me it is an avarage of several payslips, some months are higher, some lower,but overall it all pans out, yes it hard financially, but by God's grace we manage, and for 3 year it hard, and i will be free of debt.

But also remeber that free of letter and calls from creditors is such a huge relief.

All the best whatever you choose.

G
User avatar
By icewhite
#131031 I am 4 months into a TD.
Does the IP check your Bank Statements every six months, I did not know that.
Also, in the unlikelihood of me having any spare cash each month, what is a reasonable amount to put away for holidays, christmas etc
Cheers :D
By kiltedscot
#131116 I dont know if that is different on each IP.

I have to complete a I&E, and send in payslips, the form asks for differnt details, and how much money i got in the bank.

dont know why they need statements as they knowmy income and will know your figures for expenditure.
User avatar
By icewhite
#131156 Kilted Scot
Cheers for that.
I am glad I have done my TD, but I know I am going to be so poor for 3 years, still it is better than Bankruptcy or if I had gone into a Debt Management Scheme, I it would have prob taken about 15 yrs to pay off. No way am I ever going to borrow money again
By wdm
#131467 They don't necessarily ask for bank statements but they normally ask for the account details so they can ask the bank themselves. They would be looking for income that's not accounted for, large deposits or expenditure that's questionable.

I would have thought that if you could save £300-£400 for a holiday it's unlikely to be queried. I wouldn't put on a form 'holiday savings'-better to slip it through under 'household expenditure' or something
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By icewhite
#131577 Cheers for the info wdm :D