DRO and the £50 surplus

Dullville · 9 April 2017 at 11:26AM

How will it stand with my DRO application if I haven't got a surplus of £50 per month after all outgoings paid?
After completing income and expenditure info I will be approx £100 short of what I spend!
Will my advisor still think a DRO is the best option?
I'm meeting her on Monday.
Thanks.

sourcrates · 9 April 2017 at 11:47AM

Hi,

Do you mean you have a £100 surplus ? or you overspend by £100 ?

Its ok to show that you spend, what you have coming in, and have nothing left, but you cannot have an overspend of £100, you must have a balanced budget, make it balance.

If you present a budget like that to your adviser, they will tell you to go away and re-think it.

Dullville · 9 April 2017 at 12:01PM

Overspend by £100!

Dullville · 9 April 2017 at 12:05PM

sourcrates wrote: »

Hi,

Do you mean you have a £100 surplus ? or you overspend by £100 ?

Its ok to show that you spend, what you have coming in, and have nothing left, but you cannot have an overspend of £100, you must have a balanced budget, make it balance.

If you present a budget like that to your adviser, they will tell you to go away and re-think it.

Thanks for your reply.
How can I balance it tho as it is a truthful statement?

sourcrates · 9 April 2017 at 12:05PM

How can you do that ?

You cant overspend by £100 unless you fund that £100 from somewere.

Dullville · 9 April 2017 at 12:12PM

sourcrates wrote: »

How can you do that ?

You cant overspend by £100 unless you fund that £100 from somewere.

Ahh I see what your saying..
I did my budget to include JSA which I will be receiving at the end of month and not my wages as have recently lost my job.

sourcrates · 9 April 2017 at 12:19PM

Dullville wrote: »

Ahh I see what your saying..
I did my budget to include JSA which I will be receiving at the end of month and not my wages as have recently lost my job.

Your budget, as long as its not extravagant, will only be looked at for one purpose, and that is to see if you have £50 or more left at month end after all your essential bills are paid.

Its best to have a negative surplus, spend all of what you have coming in, remember prices will rise, costs increase, no one will vet your budget, it is not checked up on, or investigated, its sole purpose is find out if you have the £50 surplus, anything less than £50, and it will just receive a tick, thats it.

sourcrates · 9 April 2017 at 12:37PM

If Fatbelly is around later, he can give you the view from an intermediaries perspective on how they use your budget details.

fatbelly · 9 April 2017 at 3:52PM

Hi

I have no particular problem with a negative surplus, but I think it raises fewer questions if it is zero or less than 50.

Stepchange and Payplan both seem to object to negative surpluses and I have picked up a few cases at CAB of people who have been turned away from those organisations because they don't have enough income! Their logic is that the situation is not yet under control, and the client is likely to incur further debts.

Of course, once you have a DRO you cannot have another one for six years.

ToxtethO'Grady · 11 April 2017 at 2:09PM

I think its more that with a negative surplus (isn't that an oxymoron) it's not solving the issue that you're still spending more than what you have coming in with no access to credit.

Different intermediaries have different processes so shop around

debt_doctor · 15 April 2017 at 10:23PM

As a DRO Intermediary I often put in negative financial statements. The figure is to show the surplus from the applicants surplus income, many are supported from family or friends or food banks to make their budgets balance.
Increasingly people do not have enough money to support their essential needs.

DD

DRO and the £50 surplus

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