If you need debt advice we can help

[Grant B]

Hi all

I have quite a lot of debt and I think a trust deed could be the best solution for me. However my problem is that I only have a part time job. I do also have income from an army pension. Would that be counted or do you have to be in full time employment?

[Steve Jackson]

Hi there Grant and welcome to the forum.

There is no restriction on only being able to start a Trust Deed if you are employed full time. As such if your income from your part time job and your pension is sufficient to cover your reasonable living expenses and make a contribution to your Trust Deed then there should be nothing to stop you.

Are you a home owner? If so it is important that you understand how any equity will be dealt with before you start the arrangement.

[Grant B]

Hi Steve

Yes, I do own a flat. I am not sure of the equity as i think prices have gone down over the last year or two. However it might be £10k or so...

[Geraldine]

Hello Grant. Before starting the Trust Deed process you would be wise to get a quick sale valuation of your property from a local estate agent. You may be surprised to find out that there is infact no equity in your property.

This is important because when you start a Trust Deed you have to agree to realise 100% of any equity you own and pay this into the arrangement. As such if there is £10k of equity you would have to find this on top of your normal monthly payments.....

[Hayden]

I agree with Geraldine Grant. You should get a local estate agent to give you a quick sale valuation (say you are looking at a job change and need to sell in 3 months). Once you have done that let us know and we will be able to give you more advice.