Considering a DRO... Advice needed with rent. Please help!

moneysavingexpert52

Hi guys, thanks for any help in advance!

I'm 21, I have a full time job which I will be losing in March. This will leave me with £9000 of debts from 3 credit cards and an overdraft. I will have no chance of paying off even the minimum monthly repayments on the cards after I lose my job.

I currently live with parents and am looking at moving in with the girlfriend. No one knows I am in debt. I am ashamed as I have nothing to show for it.

I want to know if a DRO, which seems to be my only option, would prevent me from renting a flat after the DRO is finished? Eg, a year after the DRO is completed, if I have a regular income and no debts, would there be any reason for me to be declined?

Many thanks.

debt_doctor

Hi,

Your DRO would stay on your credit file for 6 years making obtaining credit almost impossible in the short term and difficult in the medium term.
Many landlords / agencies do credit checks as standard, which could cause you issues and LLs may want 6 months advanced rent or a guarantor before granting a property.

DD

moneysavingexpert52

Are there any other options out there?

I will have no way to pay the credit cards when I lose my job.

fatbelly

moneysavingexpert52 wrote: »

Are there any other options out there?

I will have no way to pay the credit cards when I lose my job.

Then you will be getting a load of defaults on your file and they will also stay for six years.

You seem very certain that you will not be able to get a new job. Could you not juggle things for a month or two and keep the minimum payments going while you job hunt?

Are you looking for a new job now?

moneysavingexpert52

Yes, I am actively seeking work. However the minimum repayments on the cards are so high. Along with rent and the cost of living, even with a full time job I'm not sure I could afford them.

Can I ask if anyone knows of a procedure for someone that has met all the payments, however has lost their job and therefore cannot pay the repayments. Are there any options for this specific synario?

Thanks for your help.