Debt Relief Orders (DRO) - Information & help thread
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i will get in touch with the dro unit tomorrow to explain everything, i had my dro done at cab and was not told to close the account, but as soon as i got the dro they stopped my overdraft but i have always kept the account, up until now with no problems, i had a barclays credit card and monument which was part of barclays both on the dro i have kept the papers, my account is minus now as the amount they took was higher than the balance, i thought it was internet fraud at first because barclays dont let me go over my balance i couldn't understand how it was minus so much, didn't even cross my mind barclays had taken it, will try and sort it out tomorrow and let you know what happens thanks for your advice0
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your very welcome, but i still cant understand why your adviser told you not to close the account iff u had debts with this bank that were included in the dro...it was one of the first things they told me to do...whatever you do dont put any more money in this account..open a new one with a completely different bank...i know its hard when you have a dro but try co-op cashminder, thats who i have gone with...good luck and i hope you get it all sorted.0
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Hi,
Just after a bit of advice (you all seem very knowledgable
).
We were paying our debts no problem until just over a year ago, husband lost his job, were in a rented house that was too expensive, it all got on top of us and in a matter of months it had just spiralled out of control. We're currently in a debt management plan (have been for almost a year) but we're struggling to pay it (paying the minimum amount possible atm) and feel like we're getting nowhere. Think we're eligable for a DRO (seem to fit all the criteria), but to be honest I'm worried about the affect it will have on us long term. My husband and I are only young, and do eventually want to buy our own home (we're looking at probably 10 years down the line, here). I don't want it to be completely off the cards because of a few problems we've had. Will a DRO prevent us from ever getting a mortgage, or are you able to build up a credit rating again once it's been on your file for 6 years?
Many thanks in advance for any advice you can give me 0 -
Hi,
Just after a bit of advice (you all seem very knowledgable ).
We were paying our debts no problem until just over a year ago, husband lost his job, were in a rented house that was too expensive, it all got on top of us and in a matter of months it had just spiralled out of control. We're currently in a debt management plan (have been for almost a year) but we're struggling to pay it (paying the minimum amount possible atm) and feel like we're getting nowhere. Think we're eligable for a DRO (seem to fit all the criteria), but to be honest I'm worried about the affect it will have on us long term. My husband and I are only young, and do eventually want to buy our own home (we're looking at probably 10 years down the line, here). I don't want it to be completely off the cards because of a few problems we've had. Will a DRO prevent us from ever getting a mortgage, or are you able to build up a credit rating again once it's been on your file for 6 years?
Many thanks in advance for any advice you can give me
Basically yes you can. You seem to have done your homework and am aware it will affect you for a good number of years once your DRO ends. It will total seven years, one year for the DRO then six years after. If you plan to get a mortgage in ten years you will be fine.
How much do you pay per month on your DMP..? If it is over £50 and you have been on it for a year, i would struggle to work out how you would be under £50 a month if you went for a DRO though as it's worked out on money left over at the end of the month without your debts included.
Has something again changed recently..?0 -
Thanks for your reply, Orville. Husband now has travel costs for work (he used to get a lift in every day, once he started work again) to the tune of £26.00 per week, we've been absolutely scraping by to make the payments on the DMP (£100 per month) by buying the absolute bare minimum shopping per week and cutting back on other little things (which is a good thing in a way, being thrifty, but it's gone beyond thrifty now!). Some months we've had to borrow from relatives to pay it
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Thanks for your reply, Orville. Husband now has travel costs for work (he used to get a lift in every day, once he started work again) to the tune of £26.00 per week, we've been absolutely scraping by to make the payments on the DMP (£100 per month) by buying the absolute bare minimum shopping per week and cutting back on other little things (which is a good thing in a way, being thrifty, but it's gone beyond thrifty now!). Some months we've had to borrow from relatives to pay it .
Then you should be ok.
My advice do a SOA http://www.makesenseofcards.co.uk/soacalc.html
then post it up on here. Wait for Fatbelly, Immoral or WBA to come along to check it all looks good. Once they have given it the ok then goto the cab armed with that and you should be good to go.:D
And of course feel free to ask anymore questions...0 -
Thanks for your reply, Orville. Husband now has travel costs for work (he used to get a lift in every day, once he started work again) to the tune of £26.00 per week, we've been absolutely scraping by to make the payments on the DMP (£100 per month) by buying the absolute bare minimum shopping per week and cutting back on other little things (which is a good thing in a way, being thrifty, but it's gone beyond thrifty now!). Some months we've had to borrow from relatives to pay it .
Who's your DMP with? if not with NDL, CCCS or CAB i would suggest contacting one of those 3 and going through an appointment process with one of them. If it is with one of them I would contact them and go through stuff with them.
I'm sure there could be £50 plus more of expenditure a trained advisor could take from your budget, that you should be allowing for yourselves but aren't! speak to one of the 3 I've mentioned, ask them about a DRO, and see what they say...0 -
Basically yes you can. You seem to have done your homework and am aware it will affect you for a good number of years once your DRO ends. It will total seven years, one year for the DRO then six years after. If you plan to get a mortgage in ten years you will be fine.
How much do you pay per month on your DMP..? If it is over £50 and you have been on it for a year, i would struggle to work out how you would be under £50 a month if you went for a DRO though as it's worked out on money left over at the end of the month without your debts included.
Has something again changed recently..?
Even before your credit file is cleared, if you go through an independant mortgage broker you'd be amazed at the deals you may find...0 -
Even before your credit file is cleared, if you go through an independant mortgage broker you'd be amazed at the deals you may find...
Can you really..? So out of curiosity do you know how much more you would pay under a dro compared to someone who isn't..?. I know you can't give out exact figures as each mortgage is different.
Another thing while i'm at it. Do you know if you can open a business bank account while under a DRO. I plan to go self employed at the end of june but plan to not make a profit till after the dro ends in september.0 -
I emailed eon a couple of days ago and theyve replied telling me they have sent me a letter to explain everything. I should be due to pay another instalment around about now so I hope the letter arrives today or over the weekend as the last thing I want to do is start falling into arrears again!
Thank you all for the help its very much appreciated in the past, now and in the future. Failure is only someone elses judgement.
Without change there would be no butterflies.
If its important to you, you'll find a way - if not, you'll find an excuse ! ~ Easy to say when you take money out of the equation!
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