Debt relief order

staciiee

came across this on the internet and i was wondering if i should do it?

Basically i have catalogues which stupidly took out now i cant afford to pay them i have one which has already been passed on to a debt company, and two others which i am on paying but i just cant afford it anymore due to the interest charges on one, i pay the minimum payment and then they out an interest charge on of nearly half of what i have just paid... Anyway i have altogether about
Studio....Around £770 (Haven't been paying this one)
Fashionworld Around £700 (interst charges are terrible
Littlewoods...£1,089 ( min payment was 100 but i told them i couldnt afford this and they put me on a payment plan of 12 payments of £53.. i dont mind paying this one as they dont add the interest charges...also i dont think id be able to include this as i took it out in my maiden name as they wouldnt let me order in married name
Grattan Around £45 this one i have been trying my best to pay off and have got it down to this
And i also owe BT around £112 which i refused to pay as when i left them i was told i wouldnt get any charges then when i did leave early i got this bill (ignored for 2 year)

My husband claims JSA for us both and i have two children under two.

I just couldnt help myself but keep ordereing everytime when they put the credit limit up i know its my own fault and i hate myself everytime i get the statements through thinking how could i be so stupid to keep on ordering when i know i cant afford it. i just feel like im stuck and they are never going to be paid off. i wish i could just afford to go to the shop to buy my kids things but i cant beause of all these catalogues.

Then i came across this DRO and wondered if i could do it? is there some sort of catch... really need to do something, thanks

wba31

staciiee wrote: »

came across this on the internet and i was wondering if i should do it?

Basically i have catalogues which stupidly took out now i cant afford to pay them i have one which has already been passed on to a debt company, and two others which i am on paying but i just cant afford it anymore due to the interest charges on one, i pay the minimum payment and then they out an interest charge on of nearly half of what i have just paid... Anyway i have altogether about
Studio....Around £770 (Haven't been paying this one)
Fashionworld Around £700 (interst charges are terrible
Littlewoods...£1,089 ( min payment was 100 but i told them i couldnt afford this and they put me on a payment plan of 12 payments of £53.. i dont mind paying this one as they dont add the interest charges...also i dont think id be able to include this as i took it out in my maiden name as they wouldnt let me order in married name
Grattan Around £45 this one i have been trying my best to pay off and have got it down to this
And i also owe BT around £112 which i refused to pay as when i left them i was told i wouldnt get any charges then when i did leave early i got this bill (ignored for 2 year)

My husband claims JSA for us both and i have two children under two.

I just couldnt help myself but keep ordereing everytime when they put the credit limit up i know its my own fault and i hate myself everytime i get the statements through thinking how could i be so stupid to keep on ordering when i know i cant afford it. i just feel like im stuck and they are never going to be paid off. i wish i could just afford to go to the shop to buy my kids things but i cant beause of all these catalogues.

Then i came across this DRO and wondered if i could do it? is there some sort of catch... really need to do something, thanks

On the face of things you appear to be so far suitable for a DRO. My only concern is that you said you kept borrowing when credit limits were increased. Creditors can object to a DRO if they feel the individual borrowed with no reasonably intention to repay. HOWEVER you also said you have done your best to maintain minimum payments so I would say you have tried to repay and I dont think a creditor could object for that reason.

The Littlewoods CAN be included despite it being in your maiden name, you should include all the debts, let the DRO give you a fresh start.

I believe your next step is to get free advice with a view to beginning the process. Visit your local CAB or call Step Change on 0800 138 1111 or National Debtline on 0808 808 4000

staciiee

Thanks I did have every intention of paying the payment when it cameto it and I have been and still am paying them apart from studio.. I offered them £20 a month and they siaid no so I thouht well !!!!!! you then (totally wrong attitude I know).will give citizens advice a ring see if I can get aj appointment with them. Thanks again for your reply

Lioness_Twinkletoes

You should bear in mind that a DRO will completely trash your credit rating - this seems a bit extreme for only £3k worth of debt. That said, as you clearly cannot exercise any self control perhaps not being able to obtain credit is a good thing.

Personally, I think you should enter a DMP and pay what you owe - even if it is only £20 per month. It might even be a vaulable lesson for you.

wba31

Lioness_Twinkletoes wrote: »

You should bear in mind that a DRO will completely trash your credit rating - this seems a bit extreme for only £3k worth of debt. That said, as you clearly cannot exercise any self control perhaps not being able to obtain credit is a good thing.

Personally, I think you should enter a DMP and pay what you owe - even if it is only £20 per month. It might even be a vaulable lesson for you.

A DMP will trash the credit rating by the client getting defaults on all accounts, and can still receive CCJ's. Plus a DMP at £20 a month for £3000 will take over 12 years?

If your judgemental comment of the client "clearly unable to exercise any self control" even is true, how will being stuck in a 12 year DMP help?

Your comment has added no value to this thread...

National_Debtline

Hi staciiee

Thanks for posting. A DRO may indeed turn out to be the right option for you, but as wba31 recommends you should get some thorough advice first from one of the free services out there.

Bear in mind that DROs are generally better suited to those who don't expect any significant improvements in their finances over the coming year - is this the case as far as you are concerned?

Other things to be aware of re: DROs :

- They will only cover debts that you include in your application, so do make sure to include anything else you owe besides these catalogues, however small or obscure it might be;

- It is probably best if you "level out" your payments to creditors now - rather than paying £53pcm to one and little/nothing to the others. This is because it can hinder your chances of getting a DRO if you appear to have been giving some creditors "preference" over others.

This is our fact sheet on Debt Relief Orders - worth a read if you haven't already done so:

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

Dennis
@natdebtline

alastairq

You should bear in mind that a DRO will completely trash your credit rating - this seems a bit extreme for only £3k worth of debt.

The credit rating, [for what it is worth?] will be pretty 'trashed' anyway. It certainly will be once Defaults start becoming recorded [probably has one or two already]...and of course, the odd CCJ isn't' going to have a positive effect, either.

The possibility of undergoing a DRO will have a beneficial effect on the OP far and beyond any attempt to preserve a 'credit rating'.

But, even more important for now, the OP has come to realise the debt situation cannot go on any more....well done for that, OP!

staciiee

National_Debtline wrote: »

Hi staciiee

Thanks for posting. A DRO may indeed turn out to be the right option for you, but as wba31 recommends you should get some thorough advice first from one of the free services out there.

Bear in mind that DROs are generally better suited to those who don't expect any significant improvements in their finances over the coming year - is this the case as far as you are concerned?

Other things to be aware of re: DROs :

- They will only cover debts that you include in your application, so do make sure to include anything else you owe besides these catalogues, however small or obscure it might be;

- It is probably best if you "level out" your payments to creditors now - rather than paying £53pcm to one and little/nothing to the others. This is because it can hinder your chances of getting a DRO if you appear to have been giving some creditors "preference" over others.


Dennis
@natdebtline

Hi thanks, yes I have read that.

No my financial situation is not likely to improve in the next year

You say to level out the payments, could because I am paying nothing to studio mean imight not be able to get a DRO? This debt is nowwith a dca

Also my husband has a car whichis worth around £1700, couldthis stop me getting the DRO?

And one last thing sorry for all the questions, my husband claims JSA for us both is that counted as my income aswell or just his? Just when I rang CAB he said on the phone whatincome you have I said none apart fromCTC and CB and my husband claims JSA for us but he said what income do I justt receive which is just the CB and CTC.

Thanks

staciiee

Lioness_Twinkletoes wrote: »

You should bear in mind that a DRO will completely trash your credit rating - this seems a bit extreme for only £3k worth of debt. That said, as you clearly cannot exercise any self control perhaps not being able to obtain credit is a good thing.

Personally, I think you should enter a DMP and pay what you owe - even if it is only £20 per month. It might even be a vaulable lesson for you.

'ONLY' 3k is a hell of a lot of debt for someone who has nothing to start off with.

I know it is my own fault and ishouldnt have got my self into this situation in the first place.

My credit rating is ruined already, and yes will be a good thing that I cant get credit

staciiee

alastairq wrote: »

The credit rating, [for what it is worth?] will be pretty 'trashed' anyway. It certainly will be once Defaults start becoming recorded [probably has one or two already]...and of course, the odd CCJ isn't' going to have a positive effect, either.

The possibility of undergoing a DRO will have a beneficial effect on the OP far and beyond any attempt to preserve a 'credit rating'.

But, even more important for now, the OP has come to realise the debt situation cannot go on any more....well done for that, OP!

Thank you.

A few month ago I done that free trial to check credit rating, cant remember which site though. And the debt is being record
on there as mssed payments.

alastairq

http://debtcamel.co.uk/debt-options/dro/

The link above outlines what's involved.