Confused over Debt solutions.

Shabbychic23
Shabbychic23 Posts: 10 Forumite
in Debt-free wannabe
I currently owe out £7.5k after being silly with credit cards and store cards when I was working and well. I recently became long term sick and registered disabled, therefore I'm literally scrapping by on PIP and child benefit.

I've been making the min payments each month off my credit card bills but this has been meaning each month I've been diving into my overdraft so it's just a continual circle of debt.

I contacted Stepchange this evening, who said I basically have nothing left at the end of the month :T and to offer my creditors token payments. I don't really want to do this because I was wanting to manage my debts and try to make some effort in getting them cleared my first thoughts was that I could do a DMP.

However I've done the online form and it mentions a DRO which I wasn't told about on the phone, is this something I can ask to apply for with them or do they need to say I can? I'm really confused over it all and token payments seem a bit like burying your head in the sand while the debt sits there which isn't what I wanted.

Thanks in advance for reply's :)

Comments

  • sourcrates
    sourcrates Posts: 28,831 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 16 May 2016 at 10:40PM
    Hi,

    In your situation a DRO may be a good option.

    There are certain criteria you have to meet in order to qualify for a debt relief order.

    Your debt must be no more than 20k.

    You must have £50 or less left per month, after all bills have been paid.

    You can have a car worth no more than £1000.

    You must not be a homeowner.

    There is a £90 fee to pay.

    You make no payments for 12 months, after which, all your debts are wiped.

    More in depth Info here :

    http://www.stepchange.org/Howwecanhelpyou/DRODebtrelieforder.aspx?WT.srch=1&WT.mc_id=288026&WT.seg_1=dro&gclid=CMi__dG038wCFcZAGwodAawL8A
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Shabbychic23
    Shabbychic23 Posts: 10 Forumite
    Hi,

    Thanks for your reply. I meet all that criteria, which is why I can't understand why it wasn't mentioned.

    I just think the token payments are pointless, my situation isn't going to change in the next 12 months.

    Should I phone stepchange back up and request or DRO then? I just don't know where I stand with them as a DRO wasn't offered when on the phone.

    Thanks
  • fatbelly
    fatbelly Posts: 20,448 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    Good advice from sourcrates as usual.

    I totally agree with you about token offers - some merit as a short-term strategy but worse than useless in the long term (I've posted about this before on this site).

    I don't know why stepchange didn't mention a DRO for you - they do do DROs - the second biggest provider after CAB. You could phone and ask, or see if your local CAB has a DRO intermediary, or access to one.
  • Shabbychic23
    Shabbychic23 Posts: 10 Forumite
    Okay, so just got off the phone to step change. After having a fiddle with my expenditure they've told me to enter a DRO and have sent me info across.

    I completely forgot however I have money in an ISA for my newborn off her grandparents, that I haven't yet sent to her ISA which I only opened this weekend. Would it matter if I sent it across now or do I need to leave everything where it is?

    I'm really confused over everything as this is the first time I've done this.
  • sourcrates
    sourcrates Posts: 28,831 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Shabbychic23 wrote: »
    Okay, so just got off the phone to step change. After having a fiddle with my expenditure they've told me to enter a DRO and have sent me info across.

    I completely forgot however I have money in an ISA for my newborn off her grandparents, that I haven't yet sent to her ISA which I only opened this weekend. Would it matter if I sent it across now or do I need to leave everything where it is?

    I'm really confused over everything as this is the first time I've done this.

    You need to be asking stepchange questions like this as only an intermediary can give you correct information.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    First Post First Anniversary Combo Breaker
    Shabbychic23 wrote: »
    Okay, so just got off the phone to step change. After having a fiddle with my expenditure they've told me to enter a DRO and have sent me info across.

    I completely forgot however I have money in an ISA for my newborn off her grandparents, that I haven't yet sent to her ISA which I only opened this weekend. Would it matter if I sent it across now or do I need to leave everything where it is?

    I'm really confused over everything as this is the first time I've done this.


    Hi shabbychic


    You don't need to do anything drastic about those ISA funds right now. Depending on the size of the fund it may not matter much either way, but Stepchange may ask for some sort of confirmation from your parents that the funds were intended for their grandchild if they feel it's necessary. It shouldn't hold up anything at this early stage in proceedings, though - just run it by them.


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • fatbelly
    fatbelly Posts: 20,448 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    Don't forget the assets limit is now £1000.
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