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rossmc
Just Joined

2 Posts

Posted - 06 November 2020 :  11:14:43  Show Profile  Reply with Quote
i am now just over a year into my trust deed and thought it was going brilliant. i was paying 133 a month which was a lot less than i was paying before it.

i took my trust deed out just over a year ago as i was in a bad place and struggling with my debt. i got a phone call from Carrington dean and it sounded brilliant. i could write off nearly half my debt and pay alot less than i was paying. so of course i agreed to it and before i knew it i received the documents and then someone was at my house the next date to sign them.

fast forward a year and now i feel like i was conned into this and being in a bad place was used to their advantage.

i have just recently started a new job so my wage is a good bit higher so on my most recent review i was told id be paying 310 a month now. which is now more than what i was paying before my trust deed. i thought cause i was paying more that i might get out m trust deed early, but i have still to pay it for the next 5 years which i was shocked at cause i thought it was 4 years.

it now means come the end of my trust deed i will have paid 15768 which will be 4000 more than my debt. and this is assuming i don't get a pay rise during this.

i have since read all the documents properly that they sent at the start and i know i should have read these at first but when you hear 133 a month for 4 years when you are in a bad place this sounds great.

I'm just wondering if this has happened to anyone before and if so what did they do? i feel like if i knew my debt would actually go up instead of down i wouldn't have done this. but they advertise as writing off debt not adding it.

sorry this is a bit long just needed somewhere to post it as i feel more stressed now than i did a year ago which isn't right

thanks

Ross

TDA (Debt Adviser)
Trust Deed Expert



13542 Posts

Posted - 06 November 2020 :  12:32:04  Show Profile  Reply with Quote
Welcome to the trust deed forum rossmc.

I think we have to be a little careful about language here when you're describing the actions of a named firm, but I do fully understand that you're very concerned about how this has worked out for you.

I'll try to answer your points in general terms, which I hope is helpful for you.

A trust deed by law runs for a minimum term of 4 years. The only way it can be completed sooner is if the total amount you've paid covers all of the following:

1 - Your debt total at the start of the trust deed
2 - Interest on those debts
3 - Your trustee's fees and costs

This total is likely to add up to quite a bit more than the amount you owed at the start of your trust deed unfortunately.

Your trustee is also required to collect in your full disposable income. This does mean that, if your income increases without any similar increase in your bills, your monthly payment will increase.

The essential point is that a trust deed only writes off the debt that you cannot afford to repay. If your financial position improves significantly after you begin a trust deed then it's really only fair that your creditors get repaid in full and receive some interest, as you will have expected to pay to them when you first took out the credit.

I do take your point about being in a bad place when you decided to go ahead with a trust deed. This is common and obviously puts a lot of responsibility on firms to try to make sure that their clients understand the commitments that they're making; sometimes at a time when people are finding it hard to absorb this type of complex information. Equally it is of course important for people to take the time to confirm their commitments before signing a trust deed and committing, but this isn't intended to be any criticism of you in the circumstances.

I hope this helps to explain why things are happening in the way that they are, though I accept some of what I've written probably isn't what you'd have hoped to hear.

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Kevin Mapstone
Trust Deed Expert



3900 Posts

Posted - 06 November 2020 :  14:28:34  Show Profile  Reply with Quote
Hi rossmc.

I think Trust Deed Adviser has summarised the situation very well, so I wouldn't really add anything to that. However, I am curious about the 5 year term - do you know what the reason was for that the extra year being necessary?

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rossmc
Just Joined

2 Posts

Posted - 10 November 2020 :  16:51:36  Show Profile  Reply with Quote
hi

thanks for your advise. it isn't what I wanted to hear but I thought it would be that. I just feel if I had more information at the time this may not of been something i done.

i am unsure why it is a 5 year term i have asked serval times and not had a answer. sent another email this morning so hopefully get a answer this time.
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