Is a Debt Relief Order worth doing?

AleMrsT

Bedsit_Bob wrote: »

Your insurance didn't pay out?

Yes, for the car I got shunted into. My car was a write off, the finance still had to be paid.

AleMrsT

National_Debtline wrote: »

Hi moohound/all

Speaking as an intermediary, we would want OP to fit the criteria now in order to get the process underway, as opposed to expecting her to fit them in the near future. This is because we want to be absolutely sure that an applicant will not be rejected and risk losing their £90 application fee.

OP - I would recommend that you get a suitable basic bank account opened ASAP so that you are no longer servicing the overdraft as a priority. The less preference shown to any of your creditors, the more smoothly an application can proceed once you meet the criteria.

Dennis
@natdebtline

I tried to open an account with Halifax as I have a credit card with them but they said I couldn't because of the outstanding overdraft with Nationwide? I've been paying off some kind of debt/loan for 10 years, and I'm no better off than when I started!

moohound

AleMrsT wrote: »

Yes, for the car I got shunted into. My car was a write off, the finance still had to be paid.

The Motor Insurers' Bureau (MIB) pay out for uninsured drivers but the value of the car and the remaining finance may not the same.

moohound

AleMrsT wrote: »

I tried to open an account with Halifax as I have a credit card with them but they said I couldn't because of the outstanding overdraft with Nationwide? I've been paying off some kind of debt/loan for 10 years, and I'm no better off than when I started!

Did you ask for a basic account, not a standard current account?

AleMrsT

Just done the below SOA. My husband pays for gas/elec/water and most of the fuel etc, plus household maintenance costs etc.

Total salary or wages per month £1067
Other types of income you might have
AmountHow often?
Maintenance or child support
Boarders or lodgers
Non-dependants' contributions
Student loans and grants
Other income
Total other types of income per month £0

AmountHow often?
Jobseeker's Allowance (income based)
Jobseeker's Allowance (contribution based)
Income Support
Working Tax Credit
Child Tax Credit
Child Benefit
Employment and Support Allowance or Statutory Sick Pay
Disability Living Allowance, Attendance Allowance or Personal Independence Payment
Carer's Allowance
Housing Benefit or Local Housing Allowance
Council Tax Benefit or Council Tax Reduction
Other (for example, Universal Credit or maternity benefits)
Other benefits or tax credits
Total benefits and tax credits per month £0
Your pensions
AmountHow often?
State Pensions
Private or work pensions
Pension Credit
Other pensions
Total pensions per month £0
Total income per month £1,067

Your assets
I confirm that I have no assets that I can use to make lump-sum payments

Your outgoings
Include all your household's outgoings.

Essential spending
AmountHow often?
Rent £500
Ground rent and service charges (factor fees if you live in Scotland)
Mortgage
Second mortgage or secured loan
Mortgage endowment and mortgage PPI
Building and contents insurance £84 per year
Pension and life insurance
Council tax (including water charge if you live in Scotland)
Gas
Electricity
Water (does not apply if you live in Scotland)
Other utilities (coal, oil, calor gas)
TV licence
Magistrates' or sheriff court fines
Maintenance or child support
Hire purchase or conditional sale
Childcare costs
Adult-care costs
+ Add a new outgoing
Total essential spending per month £507

Phone
AmountHow often?
Home phone
Mobile phone £17
Other phone costs
Total phone per month £17

Travel

AmountHow often?
Public transport (work, school, shopping and so on) £13 per week
Other travel costs (such as taxis)
Car insurance £48 per month
Road Tax
Fuel (petrol, diesel, oil) £60 per month
MOT and car maintenance
Breakdown or recovery
Parking charges or toll-road charges
+ Add a new outgoing
Total travel per month £164

Housekeeping

AmountHow often?
Food and milk £50 per week
Cleaning and toiletries £10 per month
Newspapers and magazines £2 per month
Cigarettes, tobacco and sweets £10 per month
Alcohol
Laundry and dry cleaning
Clothing and footwear
Nappies and baby items
Pet food
Total housekeeping per month £272

Other spending

AmountHow often?
Health costs (dentist, glasses, prescriptions, health insurance) £10 month
Repairs, house maintenance, window cleaning and maintenance contracts
Hairdressing or haircuts
Cable, satellite and internet £21
TV, video and other appliance rental
School meals and meals at work £8 week
Pocket money and school trips
Lottery, pools and so on
Hobbies, leisure or sport (including pub, outings and gym) £20 month
Gifts (Christmas, birthdays, charity and so on) £20 month
Vet bills and pet insurance

Total other spending per month £106

Total outgoings per month £1,066

DEBTS -
CC 1 £2389 - £60 per month
CC 2 £1971 £40 per month
LOAN - £2176 £168 per month
OD - £1050 (need to reduce to £700)

The above figures cant actually be right, because I also pay the monthly payments on my loans and CC's as above. Unless they are right and thats why I'm in this mess!

AleMrsT

moohound wrote: »

The Motor Insurers' Bureau (MIB) pay out for uninsured drivers but the value of the car and the remaining finance may not the same.

This was 10 years ago now, it went to court through a solicitor, which I paid for, I got a very small pay out because he was broke (hence why he was driving uninsured) didn't even get 1/3 of what was owed but I just took the offer, he was a horrible person. The fine the driver got for being uninsured was less than my annual car insurance premium the following year. I wouldn't mind being in debt if I had some nice shoes and a decent Mercedes to show for it!

AleMrsT

moohound wrote: »

Did you ask for a basic account, not a standard current account?

What is the difference between the two? Do you think I should ask again? How would I use the account if I have nothing to go into it?

[Deleted User]

AleMrsT wrote: »

Yes, for the car I got shunted into. My car was a write off, the finance still had to be paid.

Not following you.

Surely your insurance would pay out for your car too?

[Deleted User]

AleMrsT wrote: »

I tried to open an account with Halifax as I have a credit card with them but they said I couldn't because of the outstanding overdraft with Nationwide?

That's odd.

I opened an account with HSBC, while I was constantly in my OD with Lloyds.

[Deleted User]

AleMrsT wrote: »

How would I use the account if I have nothing to go into it?

You have your wages paid into the basic account, rather than the NW account.

BTW. That SOA is a bit overcomplicated, while also lacking in detail.

I'd suggest using the regular MSE one.

http://www.stoozing.com/calculator/soa.php