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    • ch1978
    • By ch1978 19th Mar 17, 7:29 PM
    • 5 Posts
    • 0 Thanks
    ch1978
    I have a personal loan with a balance of £11,000 and a credit card with a balance of £1,800 both of which are solely in my name with an outgoing monthly cost of £300. My monthly income is £990

    On top of this, I have 3 young children and a wife who is not in employment. Because of her circumstances changing(having to be a house wife due to looking after the children) I am also paying some of her debts(credit card/store cards/care insurance).

    We jointly receive working tax credit, child tax credit, housing benefit and council tax benefit

    The car which she drives is in her name(value under £1,000) and our monthly rent is in both our names.

    I am very tempted to go for a D.R.O. but not sure how it would work with regards to me paying towards 'debts' that are in her name and also receiving 'joint' benefits.

    Would it be easier to simply apply for one based solely on what 'debts' that I have in my name only or should I include what I pay towards her 'debts'?

    And before anyone asks, despite the benefits that we receive, we are seriously struggling financially on a monthly basis
    • fatbelly
    • By fatbelly 19th Mar 17, 8:41 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    I can believe you're struggling. That's not a high wage, and your HB/CTB probably leaves a lot of rent/council tax still to pay.

    Payments towards her debts would not be a legitimate expense but if your income/expenditure as a couple shows less than £50 surplus before debt payments, that's fine. If it's less than £100, that's probably still OK as it's only your income/expenditure that goes on the application.

    How much are her debts? Maybe a pair of DROs is the way forward.

    You need to have a chat with an Intermediary. You could try CAB or Stepchange or National Debtline.
    • ch1978
    • By ch1978 20th Mar 17, 6:03 PM
    • 5 Posts
    • 0 Thanks
    ch1978
    I can believe you're struggling. That's not a high wage, and your HB/CTB probably leaves a lot of rent/council tax still to pay.

    Payments towards her debts would not be a legitimate expense but if your income/expenditure as a couple shows less than £50 surplus before debt payments, that's fine. If it's less than £100, that's probably still OK as it's only your income/expenditure that goes on the application.

    How much are her debts? Maybe a pair of DROs is the way forward.

    You need to have a chat with an Intermediary. You could try CAB or Stepchange or National Debtline.
    Originally posted by fatbelly
    Thank you for the response.

    Her debts are on credit cards and total approx £5,000.

    Ideally we did only want one of us to go for the DRO but if it will work in our favor to do a joint one then perhaps we will.

    When I initially took out the loan in my name, I was also on more money from work so my circumstances and obviously having another child have changed from when I originally took it out.
    When she received the credit cards, she was also in full time employment.

    Thinking a joint DRO will be the way forward and we will look to seek some more advice
    • sourcrates
    • By sourcrates 20th Mar 17, 6:47 PM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    Thank you for the response.

    Her debts are on credit cards and total approx £5,000.

    Ideally we did only want one of us to go for the DRO but if it will work in our favor to do a joint one then perhaps we will.

    When I initially took out the loan in my name, I was also on more money from work so my circumstances and obviously having another child have changed from when I originally took it out.
    When she received the credit cards, she was also in full time employment.

    Thinking a joint DRO will be the way forward and we will look to seek some more advice
    Originally posted by ch1978
    Can't do a joint one, it's one each.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • fatbelly
    • By fatbelly 20th Mar 17, 6:47 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    Thank you for the response.

    Her debts are on credit cards and total approx £5,000.

    Ideally we did only want one of us to go for the DRO but if it will work in our favor to do a joint one then perhaps we will.

    When I initially took out the loan in my name, I was also on more money from work so my circumstances and obviously having another child have changed from when I originally took it out.
    When she received the credit cards, she was also in full time employment.

    Thinking a joint DRO will be the way forward and we will look to seek some more advice
    Originally posted by ch1978

    There's no official minimum debt level but if she has 5k of debt and <£50 of surplus then it's definitely something she should consider.

    It would be 2 x DROs, with 2 x £90 fees
    • ch1978
    • By ch1978 20th Mar 17, 8:09 PM
    • 5 Posts
    • 0 Thanks
    ch1978
    There's no official minimum debt level but if she has 5k of debt and <£50 of surplus then it's definitely something she should consider.

    It would be 2 x DROs, with 2 x £90 fees
    Originally posted by fatbelly
    Thank you.

    Just to clarify and if I was to go for one on my own.

    Would I then declare half the total amount of benefits that we receive in respect of my income?

    Would I be better of taking on some of her debts by transferring her credit card balances onto one of my cards?
    • fatbelly
    • By fatbelly 20th Mar 17, 10:09 PM
    • 11,221 Posts
    • 8,389 Thanks
    fatbelly
    Declare everything to the Intermediary and let them work it out - it's they who will have to answer any tricky questions. Although, in 7 years of doing these I can only think of one time that I was asked to explain my figures.

    Your other question is more difficult. Better to play this with a straight bat I think. Your debts are yours, hers are hers. Switching debt around in an obvious way, knowing that you are going for a DRO, could result in problems.
    • ch1978
    • By ch1978 21st Mar 17, 7:00 PM
    • 5 Posts
    • 0 Thanks
    ch1978
    Declare everything to the Intermediary and let them work it out - it's they who will have to answer any tricky questions. Although, in 7 years of doing these I can only think of one time that I was asked to explain my figures.

    Your other question is more difficult. Better to play this with a straight bat I think. Your debts are yours, hers are hers. Switching debt around in an obvious way, knowing that you are going for a DRO, could result in problems.
    Originally posted by fatbelly
    Just wasn't sure if it would look like I have too much income coming in but I suppose if I was to declare all my bills(such as rent) as the full amount instead of 50% then this would make sense.

    Was going to transfer one of her credit card balances as I now have 0% interest whereas she hasn't but will hold off doing that if it could effect things.
    • lowey133
    • By lowey133 24th Mar 17, 2:57 PM
    • 2 Posts
    • 0 Thanks
    lowey133
    Hello everyone,


    I am finally facing up to my debt. I earn about £1,450 after tax.


    I have debts of £14,000 on credit cards.


    I pay my girlfriend board. Depending what I put for this changes me being within the £50 a week limit.


    I've also been balance transferring between my 4 credit cards and have paid off lumps sums into some more than others.


    I have put all the details into Step Change and they advised DRO.


    I have a few questions?


    How are the outgoings scrutinised? Do I need receipts from the barbers etc?


    Having paid off £500 of a credit card recently with gambling winnings (I'm getting help for my gambling) and other balance transfers will this look like favouritism?


    How do I value my car? Range is £750 to £2k. It's an old MX5. What happens if I sell this before DRO?


    How is the amount of board I pay proven? It's not exactly declared as income and is mates rates.


    Any other advice greatly received.
    • sourcrates
    • By sourcrates 24th Mar 17, 3:14 PM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    Hello everyone,


    I am finally facing up to my debt. I earn about £1,450 after tax.


    I have debts of £14,000 on credit cards.


    I pay my girlfriend board. Depending what I put for this changes me being within the £50 a week limit.


    I've also been balance transferring between my 4 credit cards and have paid off lumps sums into some more than others.


    I have put all the details into Step Change and they advised DRO.


    I have a few questions?


    How are the outgoings scrutinised? Do I need receipts from the barbers etc?


    Having paid off £500 of a credit card recently with gambling winnings (I'm getting help for my gambling) and other balance transfers will this look like favouritism?


    How do I value my car? Range is £750 to £2k. It's an old MX5. What happens if I sell this before DRO?


    How is the amount of board I pay proven? It's not exactly declared as income and is mates rates.


    Any other advice greatly received.
    Originally posted by lowey133
    Hi,

    Stop paying your creditors for starters, dont make any more "one off payments", you are not scrutinized, no, what you tell the intermediary is whats recorded, no proof is required, except for your budget, in the form of an income/expenditure form.

    So make sure your budget leaves you with less than £50 a month.

    You do not have to provide proof of any payments, and your car value is taken in the same way, if its an old car, price it at the bottom end of the scale, no one will physically check on this.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • lowey133
    • By lowey133 24th Mar 17, 3:36 PM
    • 2 Posts
    • 0 Thanks
    lowey133
    Just pay the minimum amount?
    • sourcrates
    • By sourcrates 24th Mar 17, 4:42 PM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    Just pay the minimum amount?
    Originally posted by lowey133
    Why bother if your going for a debt relief order ?

    Your just throwing your money away really arnt you ?

    Your DRO can be up and running in around 48 hours once submitted and approved.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • hullvon
    • By hullvon 24th Mar 17, 9:02 PM
    • 15 Posts
    • 4 Thanks
    hullvon
    dro
    both on benefits
    my debt £10.000

    esa claim in husbands name claiming for me
    iib in husbands name
    dla for husband in his name
    dla for me in my name

    would a dro be the best way forward for me in my own name

    any advise would be very helpful

    debt taken on before husband had amputations
    • sourcrates
    • By sourcrates 25th Mar 17, 11:33 AM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    both on benefits
    my debt £10.000

    esa claim in husbands name claiming for me
    iib in husbands name
    dla for husband in his name
    dla for me in my name

    would a dro be the best way forward for me in my own name

    any advise would be very helpful

    debt taken on before husband had amputations
    Originally posted by hullvon
    Hi,

    DLA not taken into account for income purposes.

    Wether its your best option or not is hard to say without knowing your full circumstances, usually if your on a very low income, its an ideal solution.

    Do you meet all the other DRO criteria ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Slateford1
    • By Slateford1 26th Mar 17, 1:41 PM
    • 15 Posts
    • 1 Thanks
    Slateford1
    Guys,

    I recently posted about applying for a dro, one problem that's come to light.... I took my last loan out on 1st Feb... can this company object as it's within 3 month?? I'm being told it doesn't matter and then it does. Thanks
    • sourcrates
    • By sourcrates 26th Mar 17, 2:08 PM
    • 11,896 Posts
    • 11,396 Thanks
    sourcrates
    Guys,

    I recently posted about applying for a dro, one problem that's come to light.... I took my last loan out on 1st Feb... can this company object as it's within 3 month?? I'm being told it doesn't matter and then it does. Thanks
    Originally posted by Slateford1
    Well they could, but its unlikely that they will.

    Most of the time they just go along with whatever is proposed.

    See what your intermediary has to say about it.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • smallandcute
    • By smallandcute 26th Mar 17, 3:56 PM
    • 43 Posts
    • 14 Thanks
    smallandcute
    just a quick question as i am still trying to get all my figures together for my debt and completeing the paperwork, is the council tax automatically taken into account as a debt and included in the DRO, i am getting a lot of conflicting information about this. thanks.
    • downwivdakidz
    • By downwivdakidz 26th Mar 17, 5:44 PM
    • 2 Posts
    • 0 Thanks
    downwivdakidz
    Hi All. I believe that DRO's are due to be reviewed this year, with the possibility of limits raised.

    Does anyone know when this review is due or has it happened yet ?

    I'm looking at applying for a DRO , but my debts are very close to £20K and my car is worth around£1300.

    Thanks for any replies.
    • hullvon
    • By hullvon 26th Mar 17, 9:45 PM
    • 15 Posts
    • 4 Thanks
    hullvon
    dro
    Hi,

    DLA not taken into account for income purposes.

    Wether its your best option or not is hard to say without knowing your full circumstances, usually if your on a very low income, its an ideal solution.

    Do you meet all the other DRO criteria ?
    Originally posted by sourcrates
    hi yes I'm am just chasing my debts around I have just cut up my two credit cards and put them in envelope and ordered my credit from Experian and I am not ordering any thing off very I'm trying to get things in order before I go to citizens advice for help as of today I'm not behind with anything but Wednesday I should pay very and my two credit cards and just cannot do it any more my credit is all totally maxed out and I will not be able to pay on Wednesday I was thinking should I get a template letter together for my debt asking them to freeze the interest as I'm going to see if I can have a dro thank you so much for your help
    • Slateford1
    • By Slateford1 29th Mar 17, 12:12 PM
    • 15 Posts
    • 1 Thanks
    Slateford1
    Hi,

    Further to my last post I'm currently getting grief of only one creditor out of 12 which is ok, I have been threatened with doorstep visits etc of this firm so I paid a 1 pound token payment much to there disgust!! However it's not showing on my account and there's no receipt of them but I've got mine.... should I now point blank refuse to pay anything because my payment isn't being acknowledged???
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