I am new here although I have looked at the forums before and I do find it comforting to know that other people out their are going through the same things as me. Not that I would wish debt problems on anyone but it just makes me feel less isolated.
Anyway I am 28 years old and have debt of around £17,000 (including student debt of £3500 which is currently deferred, an Egg Loan, Egg credit card, an overdraft with lloyds TSB of £600 and an HP with Dixons of £202). I have been keeping up payments with some difficulty for the past 2 years and now have spoken to a debt advisor who has said I would be able to go for a trust deed. However although I feel at the moment I don't really have much choice but to apply for a trust deed I have some questions about them.
1. My major creditor is Egg and I owe them around £12,000 pounds does anyone have any experiance of how Egg respond to requests for Trust Deeds?
2. Like some other people on this forum my debt is a total secret from my boyfriend and my family and I really do not want them to find out about my debt or the trust deed as I believe it would severely damage my relationship with them. I am very worried that by applying for the trust deed I will start a ******* of letters and phone calls to the house where I still live with my parents so that it will no longer be a secret from them. More importantly I am very, very worried that my taking out a trust deed could cause problems for my parents if they apply for credit in the future as we share the same address. My Parents were in debt many years ago unable to get credit anywhere and worked very hard to improve their circumstances and hate myself to think that I may have done anything that could affect them adversely. The same concern goes for my boyfriend who is keen for me to move in with him once he has bought a new flat, would my sharing the same address with him affect his credit rating.
3. Will it be possible for me to open a bank account with a direct debit card if I have a Trust deed and if so should I set up my new account before applying for the trust deed baring in mind that one of my creditors is my current bank. I am worried that if I try to change over the payment of my wages to a diffrent account that the TSB will freeze my account and take anything that is in it to go towards my current overdraft. Do you think they could do this.
4. One of the items that comes under my trust deed is an HP for an Ipaq which I bought for a previous job. I no longer have this item but am still paying for it. If I enter into the trust deed with Dixons excpect this item back and what will happen when they discover that I no longer have it?
5. Is it possible to keep one credit card with a low limit if you have a protected trust deed? I only ask this as I do most of my shopping for christmas presents online and I am aware that it is not as safe to use your debit card online as a credit card. I know that losing these advantages is part of the price you pay for getting into trouble with debt but I just wondered.
I got into debt by a combination of stupidity and unfortunate circumstance at a time when I was young and naive. I have given myself such a hard time about my debt that at times I have just wanted to die. I know that what ever I chose to do it is going to be another very hard time ahead and that the best I can try and do is not let my foolishness impact on those I care about. At the moment I still feel that I have ruined my life because of this but I still have some hope this can change.
Many thanks for reading this, any advice whats so ever about any of my questions is greatly appreciated.
Take care all,