Help with Debt relief order

graeme_was_here

Hello i'm new to this forum so hi everyone.

My situration is as follows. I am a student wporking part time and during this i got into debt with my credit card and then the student finance decided to revoke my student loan for this year as i failed my last year due to medical reasons still trying to get my loan for the year.

During this i ran into rent debt with my landlord which i then did the stupid thing and got a payday loan to pay the final part of my rent. Now i am stuck in this cycle of debt and despite my best effprts to get more hours at work while i wait to see if i can get my student loan for this year i am left with a payday loan which i have to keep rolling over which means it never gets paid off and my credit card and student overdraft.

I know i being silly and i put my hands up and i got told by a work collague that i could maybe think about applying for a debt relief order to help me i just want to know if this is a good idea and a few questions.

I read the assets and i was wondering what covers that for example i was given a Playstation 3 as a gift but i would be willing to sell or surrender it but my major concern is my laptop which i need when i restart uni if i explained this to the OR would i be allowed to keep the laptop i aint concerned about keeping the PS3 as it's a luxuy item but my laptop i need it to study.

Would a DRO be a good idea for me or should i just contact all my creditors and discuss payment options and hope they dont get bailiffs to rob my home of the few items i do have.

Any help would be great i dont want to escape this debt i just want the chance to right things.

jamesb1239

graeme_was_here wrote: »

Hello i'm new to this forum so hi everyone.

My situration is as follows. I am a student wporking part time and during this i got into debt with my credit card and then the student finance decided to revoke my student loan for this year as i failed my last year due to medical reasons still trying to get my loan for the year.

During this i ran into rent debt with my landlord which i then did the stupid thing and got a payday loan to pay the final part of my rent. Now i am stuck in this cycle of debt and despite my best effprts to get more hours at work while i wait to see if i can get my student loan for this year i am left with a payday loan which i have to keep rolling over which means it never gets paid off and my credit card and student overdraft.

I know i being silly and i put my hands up and i got told by a work collague that i could maybe think about applying for a debt relief order to help me i just want to know if this is a good idea and a few questions.

I read the assets and i was wondering what covers that for example i was given a Playstation 3 as a gift but i would be willing to sell or surrender it but my major concern is my laptop which i need when i restart uni if i explained this to the OR would i be allowed to keep the laptop i aint concerned about keeping the PS3 as it's a luxuy item but my laptop i need it to study.

Would a DRO be a good idea for me or should i just contact all my creditors and discuss payment options and hope they dont get bailiffs to rob my home of the few items i do have.

Any help would be great i dont want to escape this debt i just want the chance to right things.

I think maybe you should post up a SOA, also do you have assets over £300, car over £1000, less than £15000 unsecured debt?

graeme_was_here

Thanks for the speedy reply

My overall debt is less than 15k overall no more than 2500 intotal i dont have a car and my assets i'm not so sure as my laptop when brought 2 years ago was 700 pound not sure on todays value and a playstation 3 second hand ges for 100 to 150 pound depending.

my debt is as follows

payday loan - Herbert Brown - £600
Credit Card Halifax - £500 limit overall debt now £691 most are charges
Halifax Overdraft - £1100 now over limit about 1178

Monthly earnings £120 - 170
the payday loan itself takes 84 pound away and the rest has to go towards gas and electric and food if i have any spare.
and work wont give me more working hours and i am trying to find better jobs that give more hours.
Would i be better off attempting to get my creditors to agree to a payment plan and hope bailiffs dont come knocking cause i already had haalifax say that they could have bailifs round in 48 hours if they wanted which worrys me a lot.

It's more annoying that if student finance gave me my maintance loan as they still charged me for this years loan i wouldn't be in bother at all.

I know i being silly and i'm gonna learn from this lesson

jamesb1239

graeme_was_here wrote: »

Thanks for the speedy reply

My overall debt is less than 15k overall no more than 2500 intotal i dont have a car and my assets i'm not so sure as my laptop when brought 2 years ago was 700 pound not sure on todays value and a playstation 3 second hand ges for 100 to 150 pound depending.

my debt is as follows

payday loan - Herbert Brown - £600
Credit Card Halifax - £500 limit overall debt now £691 most are charges
Halifax Overdraft - £1100 now over limit about 1178

Monthly earnings £120 - 170
the payday loan itself takes 84 pound away and the rest has to go towards gas and electric and food if i have any spare.
and work wont give me more working hours and i am trying to find better jobs that give more hours.
Would i be better off attempting to get my creditors to agree to a payment plan and hope bailiffs dont come knocking cause i already had haalifax say that they could have bailifs round in 48 hours if they wanted which worrys me a lot.

It's more annoying that if student finance gave me my maintance loan as they still charged me for this years loan i wouldn't be in bother at all.

I know i being silly and i'm gonna learn from this lesson

Unless halifax have already taken you to court and got a ccj for non payment then they cant send bailiffs round.. they send "colectors" when they knock you either dont open the door or you tell them where to go *nicely of course*. A full SOA would be of use, showing rent benefits etc, and all outgoings (not to creditors) as to get a dro then you need to have less than £50 per month surplus, before you pay any debts which i dont think you have as you can pay £84 per month to a payday loan.

It seems also that with so little debt you may be being a little hasty going for a DRO, maybe writing to your creditors with a full SOA and offering them small payments if they agree to freeze interest until your situation improves and can pay more.

I would advise that you speak to one of the debt charities also

graeme_was_here

thanks for the advice and as far as i know i dont have a CCJ as i never being to court.
Though i get nervous with them ringing my mobile and landline like 10 to 20 times i day everyday except sundays i find it hard to sleep is there any way of having them stop ringing my landline and mobile.

Do you think it's a better idea to attempt to try and make a payment system for my debts untill summer cause summer if it was like last year i am always given full time shifts so my pay should go up to 600 to 800 pound a month which would allow me to pay off the debts easier.

Would you think it's better i try and hang on till mid june when me hours double at least. Also should i also claim back my overpaid income tax cause i have being on tax code BR 0 for 2 years which is apprantly meant i paid too much tax but i didnt claim back as awork collague told me you cant unless you got to court. The tax rebate alone would cover my payday loan easily.

I sound stupid and dense but i'm just scared claiming back bank charges as halifax could turn nasty but now i know that they cant send bailiffs until i go to court i dont feel as scared or imtimidated.

Thanks for the help

jamesb1239

graeme_was_here wrote: »

thanks for the advice and as far as i know i dont have a CCJ as i never being to court.
Though i get nervous with them ringing my mobile and landline like 10 to 20 times i day everyday except sundays i find it hard to sleep is there any way of having them stop ringing my landline and mobile.

Do you think it's a better idea to attempt to try and make a payment system for my debts untill summer cause summer if it was like last year i am always given full time shifts so my pay should go up to 600 to 800 pound a month which would allow me to pay off the debts easier.

Would you think it's better i try and hang on till mid june when me hours double at least. Also should i also claim back my overpaid income tax cause i have being on tax code BR 0 for 2 years which is apprantly meant i paid too much tax but i didnt claim back as awork collague told me you cant unless you got to court. The tax rebate alone would cover my payday loan easily.

I sound stupid and dense but i'm just scared claiming back bank charges as halifax could turn nasty but now i know that they cant send bailiffs until i go to court i dont feel as scared or imtimidated.

Thanks for the help

I have always just gone to my local tax office to claim back my overpayments, you just need to take your p60's for those years and then get your tax code sorted. You can try writing to them and asking them to communicate with you only in writing but i never had much luck with that one.
Unfortunately other than changing your number there isnt much you can do. The debt charities would be able to assist you in offering token payments of £1 or so per month until you get yourself sorted.
I think that you really need to speak with Citizens advice or somebody to help you with this. Im sure more knowledgeable people will be along shortly

flaxvert

I was told by my CAB rep to tell them next time they call that i will only deal with them by letter as these phone calls are a form of harassment. I used this with RBS, British Gas and a few mobile providers, they all stopped with the calls straight away.