Hassle from creditors

[david0404]

I have been trying to pay my debts off for a couple of years now and dont seem to be getting anywhere. I am paying as much as I can spare from my monthly income to my creditors which consist of 2 credit cards, a catalogue and store credit for a couple of items. These are just my debts and I own my house jointly with my partner. The credit cards especially are not going down at all. I feel like they will never be paid and I want to be using the money each month for other things for our homeetc. Surely there must be something I can do to pay these off more effectively. Also it would be easier if I knew when they would be paid because at the moment it could be forever. I really dont want this to affect my house. The creditors are not at all helpful. Doea anyone have any ideas because I am so fed up with this. My debts are roughly £10k. I spend a minimum of £200 per month on them just now but it does depend on what I can manage. I live in Scotland, Can anyone advise on what I can do up here?

[Emily]

Matthew Wright, the conusmer champion gave some very good advice for samll CC debts on TV last night. Get a creditcard with 0% transfer, CITI Bank does one for the life time of the balance and Barclays do one too on I think 6%.

[Jo Rolland]

Hello David,

As you are in Scotland, I can advise you.

You have indicated that you are a homeowner, do you have any equity in your property?

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[david0404]

We have a secured loan on the house so we are in negative equity. The house is worth roughly £110k. Our mortgage has about £95k outstanding. The secured loan which we took last year was for £20k.

[Jo Rolland]

As the debts are in just your name David, you may be able to sign a Trust Deed.

A Trust Deed does include any assets that you may have, and if you were to have equity in your property you would be required to realise your share of this equity to your Trustee. As it appears you are currently in negative equity though, if you were to enter a Trust Deed the Trustee would take a nominal sum of approx £500 as payment towards any future equity and relinquish any hold over the property.

A Trust Deed is a legally binding agreement between you and your creditors and usually lasts for a period of 36 months. Once you have made the agreed payments for the agreed period of time, and remaining debts are discharged by law.



Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[david0404]

The Trust Deed sounds like something I would be interested in. I need to find out more about it as I dont know much. How much would I be paying each month and who would I pay it to? What would happen to my creditors? Would I be debt free after the 36 months?

[Jo Rolland]

Firstly your income and expenditure would be reviewed at ascertain your monthly surplus income. Once the monthly contribution is agreed between you and your IP, you would sign the Trust Deed. The Trust Deed is registered and advertised in the Edinburgh Gazette. Your creditors are also sent a copy of the proposal and are invited to submit their claims, some creditors may not agree to your Trust Deed proposal but to gain protected status, the proposal needs to be accepted by more than 50% of your creditors in number or more than 2/3rd in value of the total debt. The majority of Trust Deed's are accepted by creditors.

After 5 weeks of the Trust Deed notice appearing in the Edinburgh Gazette and assuming the majority did not object, your Trust Deed then has protected status, whish means your creditors are legally bound by its terms, as are you.

You would then be making monthly payments to your IP (the Trustee) who will hold the money in trust for your creditors for the agreed period, which is normally 36 months.


Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk

[david0404]

Thanks for all the info, where can I read more about trust deeds and if this is what I wanted do who would I talk to to get the process started?

[Jo Rolland]

Here is a link for you. If you have anymore questions, please let me know.

http://www.debtalternatives.co.uk/trust-deeds.htm

Jo Rolland
Debt Alternatives
www.debtalternatives.co.uk