Debt Relief Order and loan balance

45rpm

Okay - it seems that the higher sum is the figure that would be used in a DRO so unfortunately my debts are too high to apply for this.

I did speak to StepChange who were fantastic and gave me some great advice but most of all were there to listen with patience and it was really helpful to talk things through with someone.

fermi

I would double check with somewhere like National Debtline.

Not that I necessarily disbelieve StepChange on that, but companies/advisors do sometimes err in technical advice so always best to get several opinions from other debt advisors. fatbelly also knows what they are taking about as an approved intermediary who does DROs day to day.

45rpm

I will give National Debtline a ring tomorrow then. I'm worried about asking TESCO direct for some reason . . .

fatbelly

I'd recommend getting a copy of your credit file and seeing what balances are being reported.

An intermediary would have to get an Experian report anyway, so it's a good idea if a DRO is at all being considered.

The £2 version is fine

http://www.experian.co.uk/consumer/statutory-report.html

45rpm

fatbelly wrote: »

I'd recommend getting a copy of your credit file and seeing what balances are being reported.

An intermediary would have to get an Experian report anyway, so it's a good idea if a DRO is at all being considered.

The £2 version is fine

Will do - I will report back too

Thank you all for your advice and replies

iceblink

I had a very similar situation to this when I sent in my application last week.

My intermediary echoed everything fatbelly has said here, it's the balance of what you owe today that is important. Which will be the figure on your credit report. Any APR or interest that is scheduled to be added against that balance in the future is irrelevant once the DRO is granted.

Definitely go with the number reported on the credit report.

45rpm

iceblink wrote: »

I had a very similar situation to this when I sent in my application last week.

My intermediary echoed everything fatbelly has said here, it's the balance of what you owe today that is important. Which will be the figure on your credit report. Any APR or interest that is scheduled to be added against that balance in the future is irrelevant once the DRO is granted.

Definitely go with the number reported on the credit report.

Thank you - I'm going to get the credit report and go from there

wba31

I would say it's the higher figure - full balance.

The lower amount would be the settlement figure if you were to pay it off in full today, so the interest added on is removed

debt_doctor

Hi,
I agree with FB and WBA, it is the amount currently outstanding and as notified to the CRAs as a balance.
Again, as WBA says, the rebate of interest figure derives from if you were to pay off the loan in full, which clearly you cannot do.
Can anything be done regarding the pending homelessness? Are you receiving any or the correct benefits? Applied for a DHP?
DD