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

Byfife
#54553 Hi there

I will try and make this short adn to the point.

Hubby and I have debts with the following over x amount of years

nothern rock £18.5k - 25yr unsecure loan
Tesco £15K 10 yr loan
egg card £6k
egg loan £6k 6 yr loan
RBS inc overdraft £11k over 5 yrs
Barclaycard £1.5k

The above is down to stupidty and thinking we could handle it.

A few years back we started struggling and had the debts reduced. We then went abroad contd to pay our debts but had to come home due to illness then had to stop paying debts.

Stupidly we stuck our heads in the sand and didnt deal with it. I am now working (albeit temp contract) and hubby works. We earn a good wage compared to some and dont own a home, just a cheap second hand car worth about £1k. No savings or furniture, had to sell it all to pay to move back home.

I am paying back RBS (will take a hell of along time to pay it back at £150pm) and I have just recd a letter from Northern Rocks debt collection agency asking that I call them (letter wasnt sent recorded delivery). My plan is to contact them MOnday to discuss repayments.

What do you think is the best route.

Contact all creditors with a repayment agreement?
Apply to go bankrupt... if so what is the percentage of earning they would take off of our salaries?
Or a DMP
Or a Trust Deed.

I am no doubt that Northern Rock will issue a CCJ if we dont pay or contact them.

Am I right in saying that will a trust deed we pay so much then after 4 years the debt wiped off. As the same with sequestration.

Thanks for taking the time to read this and any advice would be so grateful.

Thanks
xx
ByGR
#54570 In my opinion a Trust Deed would be the way forward. A DMP would take forever to pay off as the creditors don't always agree to stop any interest due. We went down that road first of all and found it was useless.
Byfife
#54720 Thanks for your advice.

OUr heads are spinning this now. We also looked at the new DMP but all the info that is out there is very overwhelming.
Byscottishdebtor
#54731 Trust Deed

But be quick, rules are changing for the worse.

You pay for 3 years a small percentage of what you owe and lets you recover.

3 years ain't easy but better than dealing with DMP which takes for ever.

Ours is now complete and now have cash in bank :D
Bytwig
#54738 I've only just signed a Trust Deed and can tell you that the relief has been wonderful. You pay back an agreed amount over 3 years and it seems to stop all the hassle almost immediatly. You need to contact someone likee CCCS http://www.cccs.co.uk who will help you work out an income & expenditure and advise you if a Trust Deed is right for you. I felt just like you and can tell you it feels so much better to have dealt with it. I'm still waiting to find out if it becomes protected which is a bit of a worry, but nothing like the stres I had trying to cope with it all myself. Good Luck.
Byfife
#54761 WHen do the rules change??

When you say protected what do you mean. We have no assets i.e.home just teh clothes in the cupboard and a bashed up old N reg car.

Also what percentage of our income do we pay??

Thanks again for all contributions.

Also sorry do we have to say to our bank like with bankruptcy.
ByGR
#54764
fife wrote:When you say protected what do you mean. We have no assets i.e.home just teh clothes in the cupboard and a bashed up old N reg car.


If you have no assets you have nothing to worry about if the TD doesn't go protected.

Also what percentage of our income do we pay??


You will sit down with an IP and go through your income and expenditure. Whatever you have left over is what you contribute to the TD.

Also sorry do we have to say to our bank like with bankruptcy.


If you have anoverdraft with the bank you will have to include that in your overall debts as part of the TD. If this is the case, before signing the TD it would be in your interests to open another account with another bank and have your salary paid into this, effectively abandoning your present account. That way the bank will not freeze your account.

If you have no OD with your bank, there is no need to inform them you are entering into a TD.

When looking into a TD I would highly recommend you shop around until you find an IP you feel comfortable with. There have been terrible instances where people have been given appalling advice and have to all intents and purposes been ripped off.

It will cost you absolutely nothing to speak to an IP and get info about the TD. So you can speak to as many as you want, finding out about fees, etc.
Bychrissy
#54779 are you able to give some examples of the rip offs at all?!!!
Am quite interested in this!
-Chrissy
ByGR
#54812
chrissy wrote:are you able to give some examples of the rip offs at all?!!!
Am quite interested in this!
-Chrissy


Erm, you Chrissy.... :(
ByJLP
#54874
fife wrote:WHen do the rules change??

When you say protected what do you mean. We have no assets i.e.home just teh clothes in the cupboard and a bashed up old N reg car.

Also what percentage of our income do we pay??

Thanks again for all contributions.

Also sorry do we have to say to our bank like with bankruptcy.


I would speak to my loacl Money Advice Organisation or CAB and get them to recommend an IP to you.

try

http://www.moneyadvicescotland.co.uk and give them a phone. They will tell you whether a Trust Deed is right for you. On the face of what you have psoted I would say so but I am always in favour of having a no obligation chat with an IP before you sign on the dotted line. And the good ones shouldnt push you into signing.
Byfife
#54891 I have just spoken to Northern Rock and very nice they were too. Agreed payments for next 6 months then we will review. Wish I had a lump sum kicking about as their deal to pay off was very good, but I dont.

Can I ask as far as my credit rating goes. If I come to arrangements for next x amount of years and pay ok etc how would it look on my file. What it look better than a trust deed.

The reason why I am asking is hopefully in a few years time I can go for a mortgage so dont know the best route to go.

Have to admit I feel a hell of alot better after speaking to them and getting it sorted.

Thanks again everyone
Bydaviebicky
#56101 must advise you again to take out a trust deed, i also had debts around 30k and have no assets, i was in a dmp but would have taken 12 years to clear debt, i now have a trust deed paying 200 pounds for 3 years and writing off around 23k of debt, much better than paying it all back, the fact you have no home etc makes it much easier and you will be debt free in 3 years-good luck
Byfife
#56153 Davie, I havent had time this week to speak to anyone re TrustDeends and I & E but can I ask what kind of figures where you left with for living etc. Did they take you to the bare bottom for the next 3 yrs.
ByJLP
#56192
fife wrote:Davie, I havent had time this week to speak to anyone re TrustDeends and I & E but can I ask what kind of figures where you left with for living etc. Did they take you to the bare bottom for the next 3 yrs.


It depends on the IP-but most are pretty generous with food /clothing allowances-on a par if not better than trigger figures.They really do try and be fair to you-the way they see it is if they only allow you the bare minimum to live on, you'll start missing payments which is not in your or the creditors interest.
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