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  • FIRST POST
    • Dullville
    • By Dullville 9th Apr 17, 11:26 AM
    • 82Posts
    • 91Thanks
    Dullville
    DRO and the £50 surplus
    • #1
    • 9th Apr 17, 11:26 AM
    DRO and the £50 surplus 9th Apr 17 at 11:26 AM
    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.
Page 1
    • sourcrates
    • By sourcrates 9th Apr 17, 11:47 AM
    • 10,272 Posts
    • 10,013 Thanks
    sourcrates
    • #2
    • 9th Apr 17, 11:47 AM
    • #2
    • 9th Apr 17, 11:47 AM
    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.
    Last edited by sourcrates; 09-04-2017 at 11:50 AM.
    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/
    • Dullville
    • By Dullville 9th Apr 17, 12:01 PM
    • 82 Posts
    • 91 Thanks
    Dullville
    • #3
    • 9th Apr 17, 12:01 PM
    • #3
    • 9th Apr 17, 12:01 PM
    Overspend by £100!
    • Dullville
    • By Dullville 9th Apr 17, 12:05 PM
    • 82 Posts
    • 91 Thanks
    Dullville
    • #4
    • 9th Apr 17, 12:05 PM
    • #4
    • 9th Apr 17, 12:05 PM
    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.
    Originally posted by sourcrates
    Thanks for your reply.
    How can I balance it tho as it is a truthful statement?
    • sourcrates
    • By sourcrates 9th Apr 17, 12:05 PM
    • 10,272 Posts
    • 10,013 Thanks
    sourcrates
    • #5
    • 9th Apr 17, 12:05 PM
    • #5
    • 9th Apr 17, 12:05 PM
    How can you do that ?

    You cant overspend by £100 unless you fund that £100 from somewere.
    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/
    • Dullville
    • By Dullville 9th Apr 17, 12:12 PM
    • 82 Posts
    • 91 Thanks
    Dullville
    • #6
    • 9th Apr 17, 12:12 PM
    • #6
    • 9th Apr 17, 12:12 PM
    How can you do that ?

    You cant overspend by £100 unless you fund that £100 from somewere.
    Originally posted by sourcrates
    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
    • By sourcrates 9th Apr 17, 12:19 PM
    • 10,272 Posts
    • 10,013 Thanks
    sourcrates
    • #7
    • 9th Apr 17, 12:19 PM
    • #7
    • 9th Apr 17, 12:19 PM
    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.
    Originally posted by Dullville
    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.
    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/
    • sourcrates
    • By sourcrates 9th Apr 17, 12:37 PM
    • 10,272 Posts
    • 10,013 Thanks
    sourcrates
    • #8
    • 9th Apr 17, 12:37 PM
    • #8
    • 9th Apr 17, 12:37 PM
    If Fatbelly is around later, he can give you the view from an intermediaries perspective on how they use your budget details.
    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 9th Apr 17, 3:52 PM
    • 10,567 Posts
    • 7,902 Thanks
    fatbelly
    • #9
    • 9th Apr 17, 3:52 PM
    • #9
    • 9th Apr 17, 3:52 PM
    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
    • By ToxtethO'Grady 11th Apr 17, 2:09 PM
    • 15 Posts
    • 4 Thanks
    ToxtethO'Grady
    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
    • By debt doctor 15th Apr 17, 10:23 PM
    • 4,007 Posts
    • 5,658 Thanks
    debt doctor
    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
    Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
    Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
    • Johnsmith2016
    • By Johnsmith2016 17th Apr 17, 10:57 PM
    • 383 Posts
    • 205 Thanks
    Johnsmith2016
    Just rebalance your budget so it shows under £50
    As long as you know day to day you can live who cares, just tick the box with them, knock a few quid off groceries etc. End of day you need the DRO so it's not going to make the situation any worse for you if your budget shows your you'll be skint, you must be skint now as well.
  • National Debtline
    Hi all


    Just to add another DRO intermediary's perspective...


    We ideally like to see an applicant's budget balance if possible before submitting a DRO application.


    It's all well and good getting existing debts written off, but if the person in question is still well short of meeting their essential bills each month it's unlikely to be a long-term solution. That said, we ultimately leave it up to the applicant if they wish to pursue the DRO regardless.


    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
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