DMP or DRO

RoseRed1234

I'm in about 11000 worth of debt.

In theory I should qualify for a DRO(I meet the criteria)but I'm concerned about how it will affect my credit rating, the only advantage to it is that my debts would be discharged in 12 months but that still leaves my credit file looking pretty poor.

With the DMP it would take me at least 5 years to pay off the debt and even after the final debt is paid my credit will still look appalling for a few years. However I'm wondering if paying back the loans and being seen doing this will help my credit rating more in the long run than the DRO.

Does anyone have suggestions?

Thank you.

Tixy

Hi

In saying you meet the criteria does that mean if you did a DMP you could only afford £50 a month towards your debts? If so then surely it would take you far more than 5years to repay the debt - like closer to 18years? If your DMP would be that sort of length of time then I'd seriously consider a DRO.

Have you spoken to one of the debt charities yet?

RoseRed1234

Yes, I spoke to National Debtline briefly.

I am currently out of work(long term sick)but am now looking for work and if I find work after the DRO has been started I don't want to lose it because I've suddenly got £60 extra month instead of £50.

However there is no guarantee I will find work in the next year or even that if I do find work I'll have more than £50 leftover each month.

If I get the DMP it won't matter if I find work or not.

I don't know what to do.