DRO and student loan payments

venus168_2

Hello
I'm thinking of applying for a dro, but before I spend £90 I want to make sure everything is fine first.
A bit of background first;
I'm currently in under £10000 worth of debt with various credit cards, loans, and overdraft. I'm in my overdraft my the maximum being £1500 and also owe my partner money as he has took loans out in his name for me.
I currently go to uni and receive loans and grants from student finance and get £2500 in months September, January and April. However the September payment went on paying my overdraft and my the end of the month I'm back in it and will be £1000 over my limit.
I know for a DRO you should not have more than £50 a month disposable income, however I have worked out without paying the debts I would have over £50 in January as I get paid another lot of my grant, but because I won't be working due to a placement year I won't be earning an income, so in January I will be exceeding the £50, however in the months following this I'm back in minuses, so how does this work, or do the dro people take this into account.

Thanks for the help

National_Debtline

Hi venus


Our DRO team would average out your student loan instalments over the period they are intended to cover, so for example a payment intended to cover September-December inclusive would be divided by 4. I would imagine that other DRO intermediaries use a similar logic.


In terms of your wider eligibility for a DRO, you need to be careful not to show any "preference" to creditors prior to an application, for example by paying off one debt in full at the expense of others. Any money owed to your partner would also need to be listed as a qualifying debt, or alternatively declared by him as a "gift" to you and effectively written off.


Dennis
@natdebtline