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New Member

3 Posts

Posted - 12 March 2019 :  12:51:16  Show Profile  Reply with Quote
I entered into a trust deed in November 2018 and got protected December 2018.
Before I entered the trust deed I applied for various credit cards in desperation to try and put Todd the inevitable. All of these were unsuccessful or so I thought.
Turns out one want and Iíd been given a £7500 credit limit.
I started spending on this as I was in desperate need for money as I have none to pay bills etc when I entered my trust deed.
I had planned to pay this off asap and then close it down but Christmas came and birthdays and a work visit expenses came and Iíve now hit £1400 spend.
I capped the limit at £1500 so I canít spend anymore.
I have looked at my budget and I can scrimp on my food allowance to pay off £150 a month and it should be more or less paid off before my first review in November.

I know Iím a stupid idiot and I shouldnít have let myself get into this situation.
My trustee was aware I had the credit card but isnít aware of the spending on it atm.

How badly does this affect my trust deed and how will this affect my review and further expenditure going forward!

Any help/advice greatly appreciated!!

Sharon Toal
Trust Deed Expert

351 Posts

Posted - 12 March 2019 :  13:50:28  Show Profile  Reply with Quote

These things happen and it most situations, are not as bad as you think.

As you correctly identified, the trust deed deals with debt before entering into the process. Your credit card is regarded as post trust deed debt and you have an obligation to make payments on account.

I would recommend continuing with your course of action and to take a pair of scissors to the card. Honesty is the best policy though and I would perhaps speak to your trustee and to give the assurance that this will not affect your monthly payment to your trust deed.

Please let us know how you get on.

Sharon is no longer posting in the forum.
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Kevin Mapstone
Trust Deed Expert

3715 Posts

Posted - 12 March 2019 :  21:18:34  Show Profile  Reply with Quote
Hi Niccac

It sounds like you've caught it just in time before it becomes a major problem. If you can manage to pay down the card and still meet your obligations to the Trust Deed then you should be OK.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
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Advanced Contributor

200 Posts

Posted - 13 March 2019 :  09:46:49  Show Profile  Reply with Quote
Hi Nicnac5,

Try not to beat yourself up too much about it. As the others have said these things happen and are a lot more common than you think.

The good thing is that you have acknowledged the tricky situation early enough to stop it getting completely out of control.

If you can make the payments each month and pay this back by cutting back on other spending and also maintain your agreed payment to the Trust Deed then like Kevin said it should be ok.

Best thing to do is cut that card up to stop the option of using it in the future.

Setting aside this issue, how have you found the Trust Deed up until now, has it make a difference to your situation?
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Advanced Contributor

139 Posts

Posted - 14 March 2019 :  18:44:30  Show Profile  Reply with Quote
happens trust me too easy but take advice from this forum and you will soon be back on track
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