Question about DRO and credit accounts that are not part of financial problem

amyjaj

I'm thinking of getting a DRO. I owe £9.900 on one card with 15.9% interest, paying £250 each month, £3000 on a catalogue with 25.9% interest, paying £350 a month and £2050 overdraft @ 18.9% interest. It's these ones that are leaving me struggling!


I also have another credit card with a much lower limit and a low interest rate of 9.9%. I was hoping to keep this account as it is cheap, manageable and handy in an emergency, but do I have to include it in the order even though it's a low debt. Also do I have to close accounts with no debt before hand?

sourcrates

To the best of my knowledge you must include all your debts in a DRO, otherwise the point is been missed, closing old accounts would not strictly be necessary but would be good housekeeping yes.

DorisTrousers

Unless my maths is wrong, you have posted about £14,950 of debt, which on its own is so close to the threshold to be dangerously so, one more months interest will take you over, but the DRO Unit will do a credit check upon submission, so even if you keep it out, and if your intermediary misses it somehow, then unless the balance is currently under £50 on that account your application would be denied anyway.

amyjaj

Thanks, everything I read about a debt relief order says debts that CAN and not must. Also info saying you can't add debt later on that you've forgotten.

fatbelly

amyjaj wrote: »

I'm thinking of getting a DRO. I owe £9.900 on one card with 15.9% interest, paying £250 each month, £3000 on a catalogue with 25.9% interest, paying £350 a month and £2050 overdraft @ 18.9% interest. It's these ones that are leaving me struggling!


I also have another credit card with a much lower limit and a low interest rate of 9.9%. I was hoping to keep this account as it is cheap, manageable and handy in an emergency, but do I have to include it in the order even though it's a low debt.

Yes you do. The DRO unit will check your application against your Experian report. If that shows over 15k debt, your application will be declined.

Are you sure that, if you stop making payments to your debts, your surplus income is less than £50 per month?

[Deleted User]

amyjaj wrote: »

Also info saying you can't add debt later on that you've forgotten.

After you have paid the fee, you can add discovered or 'come to light' debts right up to the point of when you go to the post office to pay the fee if you let your intermediary know, I don't recommend keeping any lines of credit open, if during the memorandum period which last 15 months at minimum, subject to good behaviour as can be extended if you are doing anything against the terms on the order! if you require/need credit during this time, you are only allowed a max borrowing of £500 during this time - and it must be declared that you are subject to a DRO and this is a must under the terms

I'm 2 years on nearly and still would never wish for a credit card, that said I did, surprisingly, manage to be dragged through a DRO with an open credit card that had previously been cleared and showed as available!! I was completely unaware it hadn't closed but the thing was I never used it ever again and when going through the process remember I was more worried at losing a bank account at the time as was told this could happen, the only saving grace was a secondary already opened bank account known as mostly as the one time PDL defaulters choice of bank account still have the electron 'non embossed' card today so I just avoided a managed have to pay for account, (only thanks to the Halifax - and I lived in fear of them finding out if they weren't already awares so I never went near a bank if I could!) so it can be that serious although this doesn't touch the sides really, you would do well to read the stories of 'my DRO has been revoked' because it can happen I believe

amyjaj

Cool, my main bank account with overdraft is with Natwest. When a not so brilliant idea of the governments, to pay housing benefit into claimant bank account instead of straight to landlords came up, I opened a 2nd with Barclays. It has no overdraft and I don't have debt with them.


In receipt of housing benefit and Council Tax Reduction, living in a housing association flat . My car is a motability car, adapted for my disability!

amyjaj

Basically l'm living on what the saw says you can live on and that's without debt!:(

amyjaj

Another question when it does say you need £50 spare income after paying household bills, is that a week?

thewhiteavenger

amyjaj wrote: »

Another question when it does say you need £50 spare income after paying household bills, is that a week?

It's per month. It's a maximum.

fermi

Couple of helpful links would be worth reading

http://www.adviceguide.org.uk/england/debt_e/debt_help_with_debt_e/debt_relief_orders.htm

https://www.nationaldebtline.org/EW/factsheets/Pages/37%20EW%20Debt%20relief%20orders%20%28DROs%29/Default.aspx