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 My Experience with a Trust Deed
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thomsen
Contributor

12 Posts

Posted - 15 June 2022 :  15:26:42  Show Profile  Reply with Quote
First off, I just want to say a big thanks to the advisors on this forum and anyone else that has assisted me over the last while. It has been greatly appreciated. I just wish Iíd found this forum before starting a Trust Deed.

Secondly, I want to apologise for the long post. I just want to share our story and hopefully provide a bit of insight for anyone else going down the same path.

Anyone considering a Trust Deed Ė Please Read!

Back in 2016 my wife and I had racked up around £18k in debt. This was a combination of a £4k joint account overdraft that we were always using, some credit cards, some store cards, and finance on a sofa. Iím not making excuses; the fault lies entirely with ourselves. We were spending more than we were earning. It was basically bad money management.

When the outgoings were becoming too much to handle, we started exploring a few avenues. One radio advert caught our attention. It was an advert for a Trust Deed offering to reduce your debts and give you one fixed monthly payment for a set number of years. It sounded too good to be true so we enquired. Before we knew it, we had an IFA at our house to run through the details.

I donít have any evidence other than the fact that my wife and I were in the room when this was said but we specifically asked the following Ė Can we move house while weíre in a Trust Deed? This was our biggest concern. We had one child at the time and we wanted to move to a better location before he started school. The answer we were given was ďYes, that shouldnít be a problemĒ. We knew very little about Trust Deeds. This was not a true statement or at least not true when you consider we were specifically talking about selling our small property and moving to a new one. The IFA knew this.

Within a few days a representative from the company handling the Trust Deed was at our house with the paperwork to sign. It was going solely in my name since all of the accounts were mainly in my name. Every page had a sticker where to sign. I was rushed through this (they told me they needed to get home before rush hour) and given no time to read through it. I was blinded by the thought of clearing the debt and went into this without the appropriate due diligence. I signed away and this is one of the biggest regrets of my life. 5 years at £130/month didnít sound too bad at the time. There was an additional year added as we were living in a mortgaged property.

When it happens, you are told to stop all payments to lenders. Cut repayments to everything no matter how small. This didnít feel right straight away. You are told you are protected which is true however only from legal action/debt recovery. From this point you are not protected from the multiple black marks applied to your record that will remain there for 6 years (or more). You are not protected from repaying any joint debt. You are not protected from your payment contributions to the trust deed increasing. You are not safe to apply for anything related to credit in any way. You are not protected from the many embarrassments this may cause in your life. You are not assisted in any way during or after the Trust Deed (or at least I wasnít).

Since I was the only one in the Trust Deed my wife was chased a few months down the line by a recovery company to pay for the joint overdraft. We paid off the £4k in a separate agreement.

The monthly payments to the Trust Deed tripled. They decided after a 6 monthly full income and expenditure assessment that I could pay more.

I needed some dental work and was refused interest free credit of a relatively low amount (I kind of expected that to be honest).

I wanted to move to a pay monthly sim only phone contract and was declined. I was declined for many things, things you donít even realise include a credit check.

I started work for a financial company and they had to put this Trust Deed down as a risk. They only found out after my probationary period; I was told if they found out earlier, I would not have received the job. My line manager was involved and it felt awful sharing this information.

You are told to empty your bank accounts of any money and open a new one. I did as was told and applied for a new account at a different bank. My friends and family werenít aware and someone transferred some money to me not realising my bank account had changed. I had to visit the old bank branch with all my Trust Deed documentation to withdraw this small cash amount as my accounts were frozen. Having to sit with the bank manager and go through this just to receive that small cash amount was another low point in my life.

When they say a Trust Deed ďmay impact your credit ratingĒ. It absolutely will. It destroyed mine. It affected my life in such a way that I can never ever recommend a Trust Deed to anyone. We entered this for an amount that I now think could have been paid back through other less-impactful means. I take full responsibility for the debt but I do not feel we were made aware of how devastating the impact would be. We still havenít been able to move house Ė I still canít get a mortgage over a year after discharge. I still have black marks on my credit report despite the Trust Deed no longer being on there. Iím told the criteria for some mortgage lenders is 3 years from discharge. Thatís a whole 8 years from signing. I would never have agreed to this if I had this information beforehand.

This has been a real harsh life lesson. I have learned to be better with money although I still have my flaws Ė a Trust Deed doesnít make you better at handling money. I will now do very thorough research before ever agreeing to something as important as this. I will try and advise anyone considering a Trust Deed to look at all other options first. Please, consider talking to your bank or the lenders directly before going down this route. I really wish I had.

I am grateful to have the debt cleared but after the monthly amount increased the final reduction to the total debt was minimal Ė especially after having to pay off the overdraft separately (they kept that listed in the Trust Deed interestingly enough). Iím relatively confident that I could have contacted the lenders individually and agreed on a repayment plan that would have been far less impactful. A Trust Deed may be right for some people, others may have had a better experience. This is just how it went for me. I would just stress that you do all the necessary research beforehand.

Lhen
Regular Contributor

18 Posts

Posted - 15 June 2022 :  22:00:24  Show Profile  Reply with Quote
Hello there,

Many thanks for sharing your story.

I can empathise and only agree - do your research before signing!

I was in my own place of desperation and I was told I could go on holiday and save money etc which turned out to be false.

I feel a Trust Deed is like a prison sentence for your finances and I honestly think the Scottish Government need to do more.

I have been suicidal with the trust deed and I wish the trustees and debt advisors actually cared about your circumstances. I worry every day I will lose my job or I am forced to move out my own family home as my parents would not want to know I have done this. It couldn't be worse and the impact this on your life is massive. I don't feel any relief at all.
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thomsen
Contributor

12 Posts

Posted - 16 June 2022 :  00:19:28  Show Profile  Reply with Quote
Hey there, thanks for the comment. I'm not sure if you're still in yours but there is light at the end of the tunnel. Once you're out and that debt is cleared you can start to rebuild. It's just not as straightforward as they make out.

I definitely agree that something needs to change. They need to make it crystal clear exactly what you're getting into and I feel there should be someone that perhaps checks in to see how you're coping during the trust deed and after the discharge. Maybe that's asking too much but I feel that would go a long way. A Trust Deed is by no means a silver bullet to all financial problems.

I hope things get better for you in the near future.

quote:
[i]Originally posted by Lhen[/i]
[br]Hello there,

Many thanks for sharing your story.

I can empathise and only agree - do your research before signing!

I was in my own place of desperation and I was told I could go on holiday and save money etc which turned out to be false.

I feel a Trust Deed is like a prison sentence for your finances and I honestly think the Scottish Government need to do more.

I have been suicidal with the trust deed and I wish the trustees and debt advisors actually cared about your circumstances. I worry every day I will lose my job or I am forced to move out my own family home as my parents would not want to know I have done this. It couldn't be worse and the impact this on your life is massive. I don't feel any relief at all.

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1985debt
Frequent Contributor

32 Posts

Posted - 16 June 2022 :  08:36:14  Show Profile  Reply with Quote
I entered sequestration following advice from on here and I wish I hadnít went anywhere near it . Firstly I was advised to try for a Trust Deed and paid the first instalment of that however not enough companies agreed to it . Then the sequestration DCO was more than I had been told it would be . The whole thing as you say is a total nightmare for your credit rating especially in terms of accommodation private lets. I feel the whole thing actually reminds me of being sold something I didnít particularly want . Iíve heard far better stories from people who have went on debt management plans with Step Change.
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Nicci_36
Frequent Contributor

36 Posts

Posted - 16 June 2022 :  08:53:53  Show Profile  Reply with Quote
Thank you to both for sharing your experience

I have just entered a protected trust deed 8 weeks ago. Can I ask what company you were both with?

Reading your posts gives me anxiety as I was told I can do as I would normally do & go on holiday or save for my sons birthday or Xmas etc.

Iím already sick with worry about the first annual review incase my monthly payments increase as I wouldnít be able to afford them,.

I was in a debt payment arrangement but as I build up more debt I revoked that & entered into a trust deed kind of wishing I never now & her stayed on my debit payment arrangement had no issues on this at all

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Lhen
Regular Contributor

18 Posts

Posted - 16 June 2022 :  10:51:50  Show Profile  Reply with Quote
Thank you for sharing your stories too.

I am half way through mine but the anxiety and stress of it all makes me feel awful.

I also feel I have been told a story by the company that just isn't true. I feel misled.

I think my biggest concern is that Trust Deeds are made out to be over in 4 years with 2 years after to sort out your credit score but is this really true if we are unable to rent/get mortgages/get anything on finance and have to declare we ever had one every time we want something on credit? I thought the point was to start over but really it is a black mark or well so it seems when you hear stories.

Yet to hear someone say the process was smooth and that they have financial freedom really.

Sorry for the downer but this trust deed has been a total disaster in my eyes.
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Kevin Mapstone
Trust Deed Expert



4100 Posts

Posted - 16 June 2022 :  10:56:49  Show Profile  Reply with Quote
Unfortunately we do often hear from people on the forum whose experience differs to what they were "sold" by a Trust Deed firm initially. However, we also hear from many people for whom a Trust Deed has changed their lives immeasurably for the better.

The key is openness and transparency from the start as to what people should expect, as well as a Trust Deed only being put forward as a recommended solution in the right circumstances. I would always recommend getting advice from more than one source and to trust your instincts - it it feels like a sales pitch then it probably is and you should look elsewhere for advice on the solutions available to you.

I feel for you, Nicci_36, having just signed a Trust Deed and now fearing it was a mistake. Chances are it will work very smoothly for you, as I am sure the vast majority do, and set you free from your debts much more quickly than a debt payment programme would have. I know you are saying you didn't have any issues in a debt payment plan, but if you were building up new debt then it doesn't sound like it was solving your problem.

There should be scope built in to your budget to save for Xmas etc and there is no reason your payments will change unless your circumstances do, so if you feel the payments are affordable then there should be nothing to worry about.

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

18 Posts

Posted - 16 June 2022 :  11:06:11  Show Profile  Reply with Quote
The only saving grace is the support of this forum and the fantastic advisors on it.

I went with a reputable company with 5 star reviews and still feel let down.

I now plan to pay my debt back in full with costs and interest as I can't cope with the stress of it.

I don't know if that will be recorded in some way on my credit score that I will hopefully not have debt written off now but stil feel upset about the process especially when I had so many calls and asked all the questions I could think of at the time.

It's the hidden details which have been missed out including the mortgage problem we all seem to have. Even those with money in the bank can't get a mortgage so will there ever be a chance for those with a past trust deed? I fear I may never own a home and that was not a risk presented at the start.

But hopefully for all of us we get through this and come out somewhat able to live normal lives.

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Nicci_36
Frequent Contributor

36 Posts

Posted - 16 June 2022 :  13:03:46  Show Profile  Reply with Quote
Thanks for your reply

There isnít anything built in to save for Xmas or birthdays. Should I be asking my trustee to add this in?

Iíve just been taking money from my other allowances to buy presents for my sons birthday next month.

Is that the right thing to do?

Thanks
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thomsen
Contributor

12 Posts

Posted - 16 June 2022 :  17:12:15  Show Profile  Reply with Quote
Apologies Nicci_36, I don't want you to regret your decision. Mine was down to bad planning and the experience I had with the IFA and Trust Deed company are not going to apply to everyone. I really hope it works out for you.

To bring some hope to this post I have just been told one mortgage lender is going to consider me. It's just an agreement in principle at the moment but it's something! If I end up getting accepted I'll be sure to share an update here.
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glasgow lad
New Member

6 Posts

Posted - 16 June 2022 :  22:05:11  Show Profile  Reply with Quote
quote:
[i]Originally posted by Nicci_36[/i]
[br]Thanks for your reply

There isnít anything built in to save for Xmas or birthdays. Should I be asking my trustee to add this in?

Iíve just been taking money from my other allowances to buy presents for my sons birthday next month.

Is that the right thing to do?

Thanks

Hi as you have to use all your disposable income to pay back your creditors and trustee there isnít any room for saving it would have to come out something in your expenditure plan to buy birthday or Xmas presentís I have just signed my trust deed first payment of £139 will come out in July your trustee surely will never find out or really bother if your expenditure plan differs to buy a present here and there I would have thought anyway

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Nicci_36
Frequent Contributor

36 Posts

Posted - 17 June 2022 :  07:27:59  Show Profile  Reply with Quote
Thanks glasglowlad

Thatís what I have been doing :;
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TDA (Debt Adviser)
Trust Deed Expert



13963 Posts

Posted - 17 June 2022 :  09:43:47  Show Profile  Reply with Quote
Hi Nicci_36,

There is scope for modest saving during a trust deed.

This might be something you could ask about when you next review your payment amount with your trustee.

It might be trickier to ask about this at the moment given that you fairly recently agreed to the budget that set your current payment amount.

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

6 Posts

Posted - 22 June 2022 :  19:01:32  Show Profile  Reply with Quote
Did anyone here do their trust deed with J&R financial solutions? xx
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Nicci_36
Frequent Contributor

36 Posts

Posted - 23 June 2022 :  12:38:20  Show Profile  Reply with Quote
I went through J&R financial solutions but they refer you to carrington dean who my trust deed is actually with.

It would appear J&R are a middle man.

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GemmaGG
New Member

6 Posts

Posted - 23 June 2022 :  13:01:20  Show Profile  Reply with Quote
Thank you Nicci_36, glad to know you have at least had a successful outcome. Middleman does seem alarming though to be really honest
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