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 Have I made the right decision?

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T O P I C    R E V I E W
Terrestrial1 Posted - 01 May 2017 : 23:05:05
So I've just recently entered into a Trust Deed and made my first payment. I'm feeling a lot less stressed and I am slowly adjusting to getting my life back on track.

However, I'm starting to question whether this was the right thing to do, I haven't seen any posts similar to my situation.

I turn 20 this month and I am halfway through studying a BA and will likely finish with a BA (Hons). I got myself into a right mess when I left home, travelled over 300 miles to university and had to set myself up in a new city. As companies offered me credit, I took it on and soon I had spiralled into enough debt that I had (jokingly) considered going on the game . Of course, a laughable thought.

I'm paying off around £6000 over 4 years. I will finish my degree in 2. My trustee knows I am a student and my loan payments are included in my income (however I do not know how this has been calculated considering I am only paid this for 9/12 months). Should this income be included? How will this look when every September I get essentially a "lump sum" (double payment, around £1000)

I work in an industry where I personally do credit checks on people every day. My contract does not stipulate anything about Trust Deeds or sequestration but the papers I signed had a document addressed to my employer and I flipped through instead of reading it. I should be safe, but there's always that nagging feeling.

I know I'm doing the right thing, just hoped there were similar circumstances out there?
7   L A T E S T    R E P L I E S    (Newest First)
David Tannock Posted - 03 May 2017 : 09:00:17
Thanks for coming onto the forum to post about your situation Stace2988. Iím sure this will reassure Terrestrial1 about the decision they took to deal with their debts.
Stace2988 Posted - 02 May 2017 : 19:41:03
Hi terrestrial1
I was in the same position as yourself as I was only 21 when entering my TD Last year after being young and silly with money getting myself in to debt I could not get out of. I often worried at the beginning that I'd done the wrong thing but 15 payments in to my trust deed I'm so glad I done it. It can be a worry to begin with but the weight it has lifted off my shoulders is unreal. Well done on taking the steps to becoming debt free, although scary it has definitely been worth it so far for myself . All the best !
David Tannock Posted - 02 May 2017 : 16:01:47
Hi Terrestrial1,

There are a lot of people who have successfully completed their Trust Deedís and went on to secure a mortgage and become a homeowner.

Also, very few people have fed back to us in the forum and also the clients that I have dealt with over the years whereby the have struggled to secure a tenancy agreement on a rental property.

You have done the right thing by entering into a plan to help you deal with your debts.
Terrestrial1 Posted - 02 May 2017 : 12:43:37
Thanks guys.

It's the start of a very long journey but most importantly a learning curve. My advertised TD has been published and now I just have to wait the 5 weeks and keep my fingers and toes crossed.

Funny how a lot of people my age think we are grown up and excellent with money. I've learnt my lesson that it doesn't matter about the material things in your life, as long as your happy on the inside!

I believe the payments reflect the 9/12 but will have to see how it fares during the summer break, extended working hours should make up the shortfall and all should work out okay.

My biggest worry is eventually applying for a mortgage to be turned down, or moving home after finishing my degree and not being accepted by letting agents or landlords due to the TD but that's a bridge one can only cross when they come to it.

Thanks again guys.
Kevin Mapstone Posted - 02 May 2017 : 09:56:03
Hi Terrestrial1

I doubt you have any reason to worry. There wouldn't be any reason to contact your employer unless you were not complying with your Trustee, in which case they can seek payment directly from your wages.

In terms of your income, if you only receive the payments for 9 out of the 12 months then this should have been reflected in working out your contributions. Usually this would mean the amount received each year being averaged out over 12 months instead.
David Tannock Posted - 02 May 2017 : 09:45:59
Hi Terrestrial1 and welcome to the forum.

If you are feeling a lot less stressed about things and are slowly starting to get your life back on track then this is a positive thing and something which you should focus on.

As TDA has advised itís difficult to say if entering a Trust Deed was the right step for you. Sometimes looking back in hindsight you can question the decision you made and if it was the right choice.

The positive is that if you maintain your agreed payments for the 4 years then you will be debt free at the end with your degree and without the burden of debt accumulated whilst being a student.

Alternative options to a Trust Deed could be the Debt Arrangement Scheme or Sequestration.

Try to remain positive and focus on the future. Rather than juggle a lot of payments to your debts you have 1 payment to maintain.
TDA (Debt Adviser) Posted - 02 May 2017 : 09:22:28
Welcome to the forum Terrestrial1.

I'd like to say congratulations on addressing your debts. That's very often the hardest step to take.

It's hard to comment from the outside about whether you've made the right decision. I do think the fact that you feel positive about it is a very good start though.

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