Trust Deed Forum - Unused car - could use to pay off my TD?
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 Unused car - could use to pay off my TD?
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BMC
Regular Contributor

18 Posts

Posted - 26 April 2021 :  12:23:57  Show Profile  Reply with Quote
Hey!

I just valued my car today.

I have an outstanding TD balance of 7260.00 (33 months paying 220)

The car could potentially sell for 8500.00 - would I be able to use the car to settle my TD?

I found out the TD fees are included in my monthly payments.

Many thanks
BMC

TDA (Debt Adviser)
Trust Deed Expert



13734 Posts

Posted - 26 April 2021 :  12:52:20  Show Profile  Reply with Quote
Hi BMC,

I'm afraid that I think a few concepts might have got a bit muddled up here.

Your outstanding balance isn't 33 months of a 220 payment. That's just an estimate of what you'll pay based upon your current situation. The amount you actually pay could end up being more or less than this depending upon what you're actually able to afford to pay in the future. It's also important to remember that none of your debt actually gets written off until you have been discharged from your trust deed.

You're right to say that your trust deed fees will be taken from your payments, assuming that your payments continue as originally anticipated. However, if you want to finish your trust deed before the end of the four year minimum term then the total you've paid (including what you have already paid) will need to cover all of the following:

1 - The full amount of debt owed at the start of the trust deed.
2 - Interest on those debts.
3 - Your trustee's fees.

This isn't to say that selling your vehicle will not enable you to complete the trust deed early. It's just that we don't know the figures involved. You'd need to contact your trustee to establish whether a sale will generate sufficient funds for this to become possible.

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