Can I go on holiday while on a trust deed?

While on the surface the idea of entering a trust deed to resolve your financial problems is fairly straightforward there are issues which need to be addressed on a case-by-case basis. Anybody who takes out a trust deed will have questions about their own circumstances, their own spending and what they can and cannot do in the future. It is imperative that you ask these questions sooner rather than later therefore allowing you to concentrate on the major matters.

Holidays on a trust deed

There are a number of factors to take into consideration if you’re looking to go on holiday with a trust deed because while the cost of everyday living is well accounted for in the trust deed small print there are some issues which may need the assistance of your trustees.

Who is paying for the holiday?

This will obviously be one of the first questions because ultimately if you are able to pay for an expensive holiday then the trustees may deem that your financial situation has changed. If your financial situation has changed for the better then they may well ask you to contribute a one-off payment or else increase your regular payments. That is assuming that you are up-to-date with your agreed trust deed payments.

If however a friend of the family or family member has offered you a holiday which they are willing to pay for then in reality there is very little that your trustees could complain about. Indeed a few days away from the hustle and bustle of everyday life may well work out better for you and leave you refreshed and ready for the challenges ahead.

How much is your break costing?

If you’re paying for a holiday yourself we could be talking about anything from a couple of hundred pounds to a few thousand pounds. As a consequence the cost of your holiday, assuming that you are paying for it yourself, is something which needs to be considered and there is no harm in letting your trustees know that you are going on holiday and you will not be around for a while. They may ask for details of your holiday, who is paying, how much it will cost and where you are going to - make sure you are truthful with them!

Living a normal life under a trust deed

While this subtitle may seem a little surreal to many people, suggesting that you can live a normal life under a trust deed, the reality is that a trust deed is not the end of the world. You will not have to account for every penny that you spend, your payments will not change unless your financial situation changes and your trustees are not out to take you for everything they can. You will have the chance to discuss your repayment plan with your trustees because ultimately if you can afford to pay off part of your debt then you will be asked to do so.

Many people will find that once finance payments have been taken out of their monthly budget their financial situation will ease significantly even taking into account payments to your trust deed repayment plan. The very fact that you are being forced to go down this particular debt management route would suggest that there was a major financial issue which was possibly dragging you down. The longer you let such situations fester and build the worse they will become and the greater the toll they will have on your health and your private life. There is no shame in asking for help to reorganise and refinance your debts and there are more than enough services out there to ensure that assistance is very easily to hand.

Debt and mental health issues

There have been a number of surveys and investigations over the years with regards to the relationship between debt and mental health issues. The reality is that the more pressure on your mind the more likely you are to struggle both from a health and mental point of view. Some people may think they can learn to live with stress and pressure but the reality is that your body will remain under massive stress for long periods of time which will eventually take their toll.

Many people who have been forced to look down the trust deed or bankruptcy routes have commented upon the massive relief they have felt once their finances have been reorganised. It is very often only when you are out of the high-pressure situation that you realise the impact it was having on your life. You can learn to sleep again, you can learn to relax again, you can look to the future and every phone call and every knock on the door will not be met with dread.

Can debt situations really sneak up on us?

There are many people who have fallen into serious financial distress who suggest that there situation did literally sneak up on them and they never quite realised how bad they were. While there are some people who experience short sharp shocks in this particular area there are many who ignore a build-up of financial pressure over months or years in the hope that it will go away. If we are honest, the vast majority of us know when our financial situation is worsening but many of us fear the unknown and continue our lives as normal.

It is only when your financial situation reaches a point from which there is no return that we all look back and think “why didn’t we do something” when in reality we could have. There is no point burying your head in the sand, there is no point looking for that magic bullet, there is no point assuming everything will come good in the end because you have to fight the fight yourself. It may well be a difficult and emotional rollercoaster sorting out your finances but at the end of the day you are taking control of your life and your finances again.

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