Your payment is based on affordability
When a Trust Deed is set up, your trustee will usually assess your income and essential household spending to work out what disposable income is available. That figure often forms the basis of your monthly payment.
What if my wages go up?
If your income increases, your trustee may review whether your monthly contribution should change. This can happen if:
- You get a pay rise
- You increase your hours
- You start a new better-paid job
- Your partner’s contribution to the household changes
What about overtime or bonuses?
Overtime and bonuses can be handled differently depending on the arrangement. Some trustees may review them regularly, while others may look at whether the extra income is consistent or occasional.
You should never assume extra income is automatically yours to keep in full without checking your arrangement terms.
What if my income drops?
If your wages fall, you lose work, your hours are reduced, or your household costs rise, contact your trustee as soon as possible. Early communication matters.
- Your payment may be reduced
- A temporary arrangement may be agreed
- Payments may be paused in some circumstances
- The term may be extended to make up shortfalls
What if I’m self-employed?
Self-employed income can fluctuate, so affordability may need more frequent review. You may need to provide:
- Bank statements
- Recent accounts
- Tax calculations
- Proof of irregular income patterns
Where income varies, the trustee may look at an average position rather than one single month.
Can I enter a Trust Deed if I receive benefits?
Sometimes, but not everyone on benefits will qualify. The key issue is whether there is a sustainable and realistic surplus after essential living costs. Benefits alone do not automatically mean yes or no.
Will my trustee review my budget later?
Yes, this is common. You may be asked for updated:
- Payslips
- Benefit letters
- Bank statements
- Utility bills
- Rent or mortgage statements
What should I report quickly?
- Job loss
- Reduced hours
- Long-term sickness
- Separation or household changes
- Major increase in rent or mortgage
- Large rise in childcare or travel costs