Do I Qualify for a Debt Relief Order?

brokepaolo

I've read up on DROs now and seeing as the criteria which states that I must not have surplus income above £50 per month after paying my priority expenses, rent + household bills, I don't think I qualify because the monthly payments to the loan companies do not fall under such priority expenses even though I cannot default on them because they are paid by direct debit from my account on the day my wages go in.

I think i'll try the Debt Management Plan but I'll talk to a CCCS advisor about my options first.

brokepaolo

Here is my SOA. I don't think i filled it in correctly because the situation with the payday loans I have is such that the monthly amounts I can afford to pay aren't contributing to paying off the loan, they are merely deferring them until next month. also, the overdrafts I have aren't being paid off on a monthly basis because I've not yet been asked to do so. As for the credit card, I'm still waiting for confirmation from American Expressd as to which collection agency is dealing with the outstanding amount, I defaulted on it last year and the agency who took it on then are no longer dealing with the £685 outstanding.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1290
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1290
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 270
Management charge (leasehold property).. 0
Council tax............................. 40
Electricity............................. 10
Gas..................................... 10
Oil..................................... 0
Water rates............................. 5
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 9
Groceries etc. ......................... 150
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 300
Holiday................................. 0
Emergency fund.......................... 5
Total monthly expenses.................. 825

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
personal loan..................3800......60........0
overdraft......................1700......50........0
credit card....................680.......0.........0
payday loans...................3050......840.......0
Total unsecured debts..........9230......950.......-

Monthly Budget Summary
Total monthly income.................... 1,290
Expenses (including HP & secured debts). 825
Available for debt repayments........... 465
Monthly UNsecured debt repayments....... 950
Amount short for making debt repayments. -485
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,230
Net Assets.............................. -9,230

tallyhoh

£70 may be less that job seekers allowance but claimants have to pay their bills (excluding rent & council tax) out of it, food, TV license, water bill etc etc.

There seems to be a lot missing off your SOA, do you have travel expenses or contents insurance for example or does the £300 entertainment bill include this?

brokepaolo

tallyhoh wrote: »

£70 may be less that job seekers allowance but claimants have to pay their bills (excluding rent & council tax) out of it, food, TV license, water bill etc etc.

There seems to be a lot missing off your SOA, do you have travel expenses or contents insurance for example or does the £300 entertainment bill include this?

I walk to work and don't have any form of insurance. the entertainment figure of £300 is a 'guesstimate' at how much I spend at weekends on going out, eating out, cinemas etc..

My phone bill is paid for by the company I work for.

I literally have no outgoings other than rent, electricity, gas, council tax, tv licence and internet. the rest goes on paying the deferral fees for the payday loans.

It's a nightmare and I need to get out of it asap because it's not getting any better.

Numpty_Monkey

brokepaolo wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned....................
Monthly Income Details
Monthly income after tax................ 1290
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1290
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 270
Management charge (leasehold property).. 0
Council tax............................. 40 Do you live in shared property????
Electricity............................. 10 good if true, I pay £15
Gas..................................... 10 same as me
Oil..................................... 0
Water rates............................. 5 mine is £15
Telephone (land line)................... 0 Budget something here;)
Mobile phone............................ 0
TV Licence.............................. 11
Satellite/Cable TV...................... 0
Internet Services....................... 9 is that what work pays for ?
Groceries etc. ......................... 150 thats fair, The OS peeps will knock it down (if you can cook), and even if you can't :eek:
Clothing................................ 10 Allowed, but I ain't bought owt full silly price for years
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0 Budget something here, £50;)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Allow £5 here
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0 you can have it in your budget
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 5
Haircuts................................ 0
Entertainment........................... 300 oh dear, this is where the budgeting will help
Holiday................................. 0 you can have a few days away :j
Emergency fund.......................... 5
Total monthly expenses.................. 825

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
personal loan..................3800......60........0
overdraft......................1700......50........0
credit card....................680.......0.........0
payday loans...................3050......840.......0
Total unsecured debts..........9230......950.......-

Monthly Budget Summary
Total monthly income.................... 1,290
Expenses (including HP & secured debts). 825
Available for debt repayments........... 465
Monthly UNsecured debt repayments....... 950
Amount short for making debt repayments. -485
Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -9,230
Net Assets.............................. -9,230

Your SOA is very similiar to what mine was a few years ago:o apart from the payday loans,
very similiar debt amounts:eek:

brokepaolo

Numpty_Monkey wrote: »

Your SOA is very similiar to what mine was a few years ago:o apart from the payday loans,
very similiar debt amounts:eek:

The 'entertainment' cost is undoubtedly what has got me into this position, spending well beyond my means on going out at weekends all the time. There's no excuse for it, it's just one of those things that everyone else does so I think 'why can't I?''.

to be honest, lately, albeit mainly due to the dire financial situation I'm in, I've gone out a lot less and started to enjoy having at least friday night or saturday night at home without going out.

I haven't factored for landline because I only use my mobile for phonecalls and that is paid entirely by my employer and has been for the 4 years I've worked there.

I also don't buy new clothes often and when I do, they're never expensive items, I'm fortunate in that respect, fashion isn't all that important to me.

I love cooking and often do bring in leftover dinners from the previous night's dinner but sometimes that's not possible(reheated bangers n mash anyone?) so I end up spending too much money on fancy sandwiches in town.

Holidays are limited to a day off or two to see my dad in Devon, there's no way I can currently afford anything which would cost more than £100.

It's clear to me that with a few relatively minor lifestyle changes, I can live within my means.

My main cause of concern is how to rid myself of the payday loans. I pretty much lost the plot last summer and following some personal problems such as a terrible relationship, living in a shared house that I loathed and general discontentment at work, I went off the rails and spent too much money on escaping it all through going out all the time.

one payday loan after the other, it was all too easy to top up the 'going out fund' at three clicks of the mouse button and when payday finally arrived, I could just as easily postpone paying the loans off for just the interest. I knew at the time that this was of no use and only playing into their hands but I didn't care.

next Tuesday is my next payday and for me to pay off all the payday loan in one fell swoop, I would have to have £3050 in my account at the stroke of midnight on monday the 19th.

Obviously, that's not going to happen so I'm wondering whether I should pay the deferral fees for yet another month, or contact them all individually to tell them that I can no longer meet the deferral fees or the full loan amount?

also, if I were to take out a DMP, I've read that some creditors are unwilling to deal with such companies and that I would have to deal with them separately. how would I find out which creditors will accept my status when I take out a DMP?

anyway, I appreciate and am very grateful for all the helpful advice. I have just finished work and will phone the CCCS helpline to discuss my situation when I get home.