Getting a contract mobile just before DRO

4ben4

My phone handset is damaged and will need replaced at some point, but I am quite likely to apply for a DRO by Christmas this year. Would it be dishonest to accept a contract upgrade in mid-November, when my current one expires?

At current prices, I could get the new handset I'd like for £20 up front. The monthly bill would be £36, about what I pay each month now. It would actually be more stable because I don't think I'd go over my allowance on the new contract. I should still be able to pay that much, if I'm allowed to by the official receiver.

I make quite a few work-related calls on my phone because it's much more convenient, but my employer has a policy of not reimbursing calls. Will the OR care about that one way or the other?

Is £36 a reasonable amount to budget for mobile costs? Given that we have broadband and a landline at home already (in my wife's name), but we almost never use the landline. It's just there so we can get a broadband connection.

Would I be expected to sell the new handset for the benefit of creditors, or return it to my network? On eBay they seem to be selling for about £230 now, and that will surely drop a bit before November. That's for an unlocked handset, which mine wouldn't be.

fatbelly

I don't see a particular problem with entering a new contract.

I wouldn't see it as a problem with asset value either.

£36 does put you at the top end of the trigger figures for telephony so I wouldn't add any of the landline/broadband in to that.

Now I'm not an expert in these things but £36 does seem a lot for a mobile contract. If I were to go for such a thing I'd read through Martin's article here first:

cheap mobiles

4ben4

Thanks! What are the trigger figures, part of the guidelines used by the DRO Unit? Are they published anywhere?

fatbelly wrote: »

£36 does put you at the top end of the trigger figures for telephony so I wouldn't add any of the landline/broadband in to that.

I know £36 is on the pricey side, but I thought trying to switch networks with a bad credit rating would be unwise. My current network (O2) seem happy to keep me on, and I do need a phone contract of some sort plus a replacement phone. Using PAYG would be far more expensive. Do you think I'll be expected to try and get something cheaper, even at the risk of ending up with nothing?

fatbelly wrote: »

Now I'm not an expert in these things but £36 does seem a lot for a mobile contract.

fatbelly

4ben4 wrote: »

Thanks! What are the trigger figures, part of the guidelines used by the DRO Unit? Are they published anywhere?


I know £36 is on the pricey side, but I thought trying to switch networks with a bad credit rating would be unwise. My current network (O2) seem happy to keep me on, and I do need a phone contract of some sort plus a replacement phone. Using PAYG would be far more expensive. Do you think I'll be expected to try and get something cheaper, even at the risk of ending up with nothing?

The trigger figures are part of the 'common financial statement' and are accessible to CAB workers and similar but are not supposed to be published.

Just noticed they are being updated this week!

Your £36 per month plan is OK (just) - wouldn't cause a problem