Where to start!?

Carl86

Hi my names Carl.

My partner and I are having money issues and am really unsure what to do.

So far between us we owe about 15k.

We built up arrears with gas electric and water which we are now paying but them 3 alone is £197 a month because we are trying to pay the arrears off. The rent is being paid but usually in 2 instalments which our landlord does not seem to mind (thank god).

We have debts to family which are being paid as well as my parents got a loan for me so I can't really leave them paying that off.

We were looking at getting a DRO but after looking into it I'm not sure if it will be possible. My parents loan will be paid off in May 2015 so that frees up 100 a month also my utility bill arrears will be paid off in about 6 months as well freeing up a bit of money. So these would be changes in circumstances which I guess would end a DRO?

I've also just started a new job where I get a few bonuses and overtime. I get paid a lumpsum of overtime every 3 months which is between 200 - 300ish. Will this effect a DRO?

I also get 3 bonuses. 1 I get every week no matter what. Another is like A commitment bonus and usually get every week and a production bonus which changes every week and might not get any at all.

When applying for a DRO or benefits which of these bonuses should I declare. 2 of the bonuses add up to 50 a week every week. The production bonus can be anything from 0 to 160 a month And isn't guaranteed.

We have 2 children as well we are always needing to spend our money on as there both under 5.

I just don't know where to start or where to go from here.

I would be greatful for any help or advice.

Thanks

[Deleted User]

my advice would be to have a chat with one of the debt charities like step change
and a look here as well
https://forums.moneysavingexpert.com/discussion/1385275

phoenixx

You are doing the right thing posting here and thinking about your plans to pay back what you owe. There is a lot of good advice at National Debtline, Step Change and cabnet.

Obviously utilities, rent/mortgage and council tax are priority debts but I totally understand where you are coming from about loans from family. Be open and honest with them if you can as sometimes they can be a great support.

Hope you are having a good Christmas even with the money worries

Verbatim

What are you spending on your two under fives? I guess the secret of debt busting is to control spending. Resent every penny leaving your accounts/purse. Is this spend vital? If not don't spend it. And plan where all the income is going and make sure it doesn't disappear into the general account where it's sure to get swallowed up into everyday spends. Get it out to where it's supposed to go the minute income hits your account.

National_Debtline

Hi Carl,

In order to qualify for a Debt Relief Order (DRO) you must have less than £15000 worth of debt each, less than £50pcm to pay towards the debt each and less than £300 worth of assets (with the exception of a car that can be worth up to £1000). You must meet these rules for the full 12months in order for the DRO to complete successfully. In addition you must have less than £50pcm of disposable money before any debts are paid (including any arrangements to family and gas, electric and water arrears).

Furthermore, all debts must be included within the DRO, this does include any debts owed to family, therefore, a DRO would prevent you repaying that sort of money. If you receive a lot of bonuses, especially if they are sporadic and inconsistent, this can sometimes cause problems because you may have more than £50pcm disposable surplus on some occasions. If that is the case then the DRO would not be able to complete successfully. We have a factsheet available on our website that may help you further - https://www.nationaldebtline.org/EW/factsheets/Pages/37 EW Debt relief orders (DROs)/Default.aspx

If the DRO is unlikely to complete successfully you are likely to be better suited towards negotiations. You may be able to do this yourself or with the help of a free Debt Management Company. You seem to have started to put arrangements in place with your priority debts, which is great, and you also seem to be starting to be able to take an average of your bonuses to help you budget more effectively. I think you may find My Money Steps quite useful to help determine a list of suitable options and a step by step guide to approach the situation.

Laura
@natdebtline