Help with maximum amount for DRO.

Olivia2013

Hi I'm new to posting here and looking for advice. I want to go for a DRO. I have made the first steps contacting stepchange and I'm trying to get all the information together.
I've got a debt with Oakam which came up when they did a basic search. This debt doesn't show up on equifax or experian. So I have requested a report from callcredit. Any way the oakam debt has escalated from a loan of £500 to £6604 and rising. I have contacted oakam they told me the name of the debt agency who has my file but I have not contact them yet. This loan is over 4 years old. But if its over £6000 it makes my total debts more than the £15,000 allowed for a DRO. I'm not sure what to do. I found out about the British gas hardship fund and will apply. Also a water company fund I'm not sure if I can apply to both. I need to bring my debts below £15000 they are about £17000 in total. Any advice please.

lizisintrouble

Olivia2013 wrote: »

Hi I'm new to posting here and looking for advice. I want to go for a DRO. I have made the first steps contacting stepchange and I'm trying to get all the information together.
I've got a debt with Oakam which came up when they did a basic search. This debt doesn't show up on equifax or experian. So I have requested a report from callcredit. Any way the oakam debt has escalated from a loan of £500 to £6604 and rising. I have contacted oakam they told me the name of the debt agency who has my file but I have not contact them yet. This loan is over 4 years old. But if its over £6000 it makes my total debts more than the £15,000 allowed for a DRO. I'm not sure what to do. I found out about the British gas hardship fund and will apply. Also a water company fund I'm not sure if I can apply to both. I need to bring my debts below £15000 they are about £17000 in total. Any advice please.

If you have debt over £15k then a dro isnt for you- sell everything and anything you can and pro-rata the payments equally to all creditors to get the debt below £15k.

MAYBE ask the DCA to review the case? But from my own presonal experience DCA will only change amounts if in relation to a full and final settlement.

You could go down the unlawful charges route, but this will take time, so its how you manage the debt in the meantime whilst this is being sorted out.

Have you contacted all creditors? I called all mine most have agreed to freeze interest for 6 months so what i pay goes off the debt not all on interest, if you can keep up the payments with no interest and over pay (by selling stuff, car boots, extra income etc) then you could get the debt below 15k soonish

You could contact the DCA and find out what you owe? £500 thats escalated to over 6k is an awful lot of interest and charges

Maybe another option is more suited as you do not, at the moment meet the qualifying criteria for a DRO

Alternitavely, and prob a long shot, is there not a oh or relative that could help you out with some of the debt, if you want to get it below the 15k? it would have to be a gift, not a loan tho

wba31

It would cost you over £2000 to get into position to do a DRO. Bankruptcy would cost you £700 for the same end result.