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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  15:35:57  Show Profile  Reply with Quote
Hello and firstly can I thank the advisors and members on the site who have shared their information on the forum.

I am considering my options for a solution to my debt level. Although I am up to date with all payments I feel it is only a matter of time before this changes.
My partner earns 20k and has personal debts in the region of 20k. I have amassed an eye watering 60k of personal debt through a life of balance transfers, unexpected costs in buying our family home and poor money management by me.
I am concerned that a trust deed may not be protected due to two of my loans being peer to peer. I also have a Barclaycard who I believe can be difficult to deal with. Is this due to them rejecting or more with regards to the return they request for a trust deed? I am currently using my Barclaycard to pay for my child's nursery and day to day items.


Our family home is worth around 165k with a remaining mortgage of 150k.

I have a salary of 50k.

My take home pay is £2550.

My monthly personal debt repayments are £1441 and totals detailed below;

First Direct Overdraft - 750 (my half)
First Direct Loan - 2730 (my half)
Ikano Loan - 9500
Zopa Loan - 9250
Rate Setter - 10487
The AA (Bank of Ireland) - 12641
Barclaycard - 1800
MBNA - 12103


My Basic Monthly Expenses;
Food - 200
Mortgage - 350
Council Tax - 100
Utilities - 50
Home insurance - 20
Car Hire Purchase - 312 (includes service plan and extended warranty)
Nursery - 150
Mobile - 11
Petrol - 60
Car Insurance - 30
TV/Broadband - 40


Any advice from the advisors would be appreciated regarding the likelihood of a trust deed and potential repayments. Hopefully I can deal with this rather substantial elephant in the room!

TDA (Debt Adviser)
Trust Deed Expert



13192 Posts

Posted - 25 November 2019 :  15:50:20  Show Profile  Reply with Quote
Welcome to the forum IgglePiggle. Thank you for taking the time to provide so much useful information in your post.

Can I ask please whether you're looking at this from a joint point of view, or whether you're primarily looking to put something in place to assist with your own financial position?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds    
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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  16:02:52  Show Profile  Reply with Quote
Hello, Thanks for the reply. I think primarily it would be for me just now. My partner has a change on work circumstances in January and she is not yet in the position to tie down her monthly salary with the change.

I forgot to mention my salary is paid four weekly but my bills are all monthly.

:)
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David Tannock
Trust Deed Expert



2284 Posts

Posted - 25 November 2019 :  16:04:41  Show Profile  Reply with Quote
Hi IgglePiggle and welcome to the forum.

Your forum name brings back great memories for me as my youngest son loved the TV program In the Night Garden. I had many a 2,3 4am with that on the TV sometimes when he wasnít too well and was up during the night. I can hear the theme tune in my head as Iím typing this reply.

Back to the reason why you are here! Firstly well done for taking the brave and very positive step of reaching out for some help and advice. You have shared a lot of very useful information for us.

In terms of your options, TDA has asked an important question about looking at options to deal with debts jointly or just in your name.

When it comes to a Trust Deed we work with all the lenders on your list and as long as we can make a proposal to them which they are happy with then a Trust Deed has a good chance of being accepted. Generally the lenders are looking for a minimum return, for the fees and costs with a Trustee charges to be in line with their guidance and for your income and expenditure not to be excessive. Some lenders can also take into consideration recent or past spending and if you took out the debt very recently.

The most important place to start when looking at your options is to go over a thorough budget with a good knowledgeable expert. This will work out what you can reasonably afford to pay per month towards a plan and importantly still enable to you live life without living on beans and toast for 4 or 5 years. We need to think about things like kids clubs, birthdayís and Christmas, haircuts, sports and hobbies etc. All these things you are allowed to have. I along with the other experts on the forum can help you with this if you like.

Once a budget has been completed and we know how much you can afford to pay per month we can start to look at your options in a bit more detail. A Trust Deed is a good option along with a Debt Arrangement Scheme and even Sequestration.

For a Trust Deed we would need to confirm the amount of equity in your property. Is this jointly owned or just in your name?

Also your car HP, who is the lender? Sometimes people can think they have HP but it can be an unsecured loan.

When you say about your half of the debts for First Direct, for the purposes of a plan we donít split the debt 50/50 but include the full balance in a plan. That means the First Direct is £1,500 o/d and £5,460 for the loan.

Try to remain positive, you do have options to deal with your debts itís now just working out which one best suits your circumstances.

Recommended Partner & Trust Deed Expert - Ask me for help setting up a Scottish Trust Deed    
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tigh
New Member

3 Posts

Posted - 25 November 2019 :  16:15:02  Show Profile  Reply with Quote
Hi Igglepiggle
We had a similar situation a few weeks ago, where all of our payments were up to date, but knew that was not achievable going forward.
We contacted the forum via the telephone number above, and we were put in contact with David, who called intially, and went through our situation, and reassured us, he could help. We then set up a meeting with David a few days later, to discuss our options, (we decided Sequestration was our best option, rather than a Trust Deed).

It's still very new for us, but we know we've taken the steps to deal with our 'elephant in the room'. Please make the phone call to these advisors, they will give all the help and advice you require to decide what's the best solution for you & your family to be debt free.



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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  16:32:35  Show Profile  Reply with Quote
Hi David, It was the first thing I saw on the ground while looking for a username! That bloody tune :)

The house is jointly owned between my wife and I.

That makes sense with First Direct, they have been a great bank to deal with all things considered.

My wife and I have opened a basic Co-op account in anticipation of a solution.

The car has been recently changed owing to a failure of the last one! They initially put it as a personal loan however I asked them to change it to HP due to the worry of more unsecured debt. It has well over 4 years to go and is with Northridge Finance.

I appreciate your reply and I hope I get get it all wrapped it and my debt sorted. The thought of not being able to pay my bills is shameful.
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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  16:38:06  Show Profile  Reply with Quote
Tigh,

Thank you very much for this sincere reply. Before I had as many commitments, responsibilities and indeed available money, I never anticipated the pressure being the main provider for a family would be.
I am really glad you reached out and it is encouraging to know that it is not just me carrying the burden. Thank you.
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David Tannock
Trust Deed Expert



2284 Posts

Posted - 25 November 2019 :  16:47:16  Show Profile  Reply with Quote
Hi,

The tune haunts parents all over the world. I also found myself still watching it when my son had fallen asleep. That zombie stage all parents go through.

Please try not to feel shameful or beat yourself up too much about all of this. You wouldnít believe how common it is to find yourself financially struggling. People donít talk about finances to friends, family etc. and can feel alone but actually there are a lot more people struggling out there. If it makes you feel any better the level of debt that you have is normal.

Thatís a good first step opening up a new account with Co-Op. Was it pretty easy to open? If you havenít already done so you want to ensure that any income is paid into that account going forward and all living bills (excluding your unsecured debts) are transferred over.

The basic budget you have provided in your first post is a good start but there will be lots of things that you will have forgotten about. Itís always the same when going over a budget. Having completed budgets with people for over 17 years now I know pretty much all of the things people forget about but are important.

I know you said about leaving your partner out of things but as an advisor it would be useful to look at both situations and then I can outline the options available to you both and also individually. When the time is right your partner can then look at their options but at least now you both have an idea.

In terms of how quickly things can work you are in control of this. It can move as quickly or as slowly as you like. If you are feeling under pressure then you could be in a plan in time for Christmas which should take a lot of the stress and worry away especially at that time of year. Actually for most people they start to feel a little better after the first phone call.

Once you have spoken to an expert and we know more about your situation and you are happy to proceed then at that point is when you stop making the debt payments. That could be within the next couple of days.

If you have some time Iíd also give your mortgage company a call and ask them for a settlement figure to enable us to confirm the equity. In a Trust Deed whatever your share of the equity is then a reasonable proportion of this needs to be paid into the Trust Deed. From what you have advised you donít have a huge amount of equity so this should be fairly straight forward.

Is there anything else you are still feeling worried about or want to ask?

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

17 Posts

Posted - 25 November 2019 :  19:00:46  Show Profile  Reply with Quote
Hi Igglepiggle,

Well done on reaching out for help, I appreciate personally how much of a big step this will have been for you. I just wanted to say don't feel shame about your debt, and this is me saying it who has significant debt also. I have cried many a time over my situation as a grown man, however have not cried since doing something about it. I highly doubt your creditors are sitting awake at night worrying for you and your family. A joint solution is a very good thing and helped in my circumstances, it's great knowing we are solving our financial problems together and can see an end in sight. Coop is actually a pretty good bank, you will be fine with it. Best of luck sorting your finances, just look forward to a future of budgeting and having quality time with your family, it really is a good place to be.
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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  22:50:13  Show Profile  Reply with Quote
Thank you again for such a detailed reply David. I will send you an message to arrange a chat. That makes sense about my partner and talking with you together. I look forward to getting started.
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IgglePiggle
New Member

6 Posts

Posted - 25 November 2019 :  23:00:29  Show Profile  Reply with Quote
Evening DasDude,

That is really reassuring, thank you. I guess as you know, you think earning a decent salary that things will get better through working away and carrying on as normal.

I can't say I have anything extravagant to show for all that debt. The main focus for me now is to get a solution sorted and enjoy time with the family instead of overtime and restless nights.

Thank you for the contribution and I will keep you and the forum updated with my progress. :)
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tigh
New Member

3 Posts

Posted - 26 November 2019 :  00:14:31  Show Profile  Reply with Quote
Hi Igglepiggle,

Good luck in taking your next step to sorting out your finances. Hopefully, you'll be in a far better position to enjoy Christmas (and have more quality time) with your family, and begin the New Year on a fresh footing.
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