Token payments until DRO is filed

Shabbychic23

I've been told to make token payments by step change and cancel all my DD to my creditors and set up a standing order of £1 per week until I get the DRO put in place.

However, they didn't really explain the process and I'm a bit confused do I just contact my creditors and explain my situation?

I'm anxious of debt collectors knocking on my door if I do all this so it's putting me off and making me stay in the red.

xstacie-mariex

Hello
I have recently filed my DRO beginning the process back in November (the lady at the CAB was on the sick so it couldn't be processed) and she advised not to make any payments at all! Not even a £1 as some companies will except and others wont and that will look like taking preference on your part (even though it wouldn't be).
Step change should give you a reference so if you are contacted by a debtor, you explain that your in the process of completing a DRO and they will usually ask for that reference, who is dealing with your case and tend to put your account on hold for around 30 days giving you a bit od breathing space and ensuring you wont get anyone knocking at your door. Hope that helps

HappyMJ

Shabbychic23 wrote: »

I've been told to make token payments by step change and cancel all my DD to my creditors and set up a standing order of £1 per week until I get the DRO put in place.

However, they didn't really explain the process and I'm a bit confused do I just contact my creditors and explain my situation?

I'm anxious of debt collectors knocking on my door if I do all this so it's putting me off and making me stay in the red.

Personally, if you know for sure you're going to go down the DRO route I wouldn't even pay the token payments.

Debt collectors can knock on your door and if you do answer it you can tell them to go away. They have no power whatsoever. All they can do is ask and you will simply say I'm taking out a DRO and cannot afford to pay any of my creditors. Do not feel pressured into making any payment at all. They can't enter your property, they can't take your things, they can't do anything.

Shabbychic23

Thanks for the replies!

I'm just so nervous over it all, I feel a bit like a naughty school girl not paying! I was just going to pay them the minimumuntil the DRO was done and processed.I'm printing all the stuff off now to get it sent in the post tomorrow, and then I need to wait for the form to pay the £90.00.

sourcrates

No need to be nervous, you have done the right thing.

I wouldn't bother with paying anything, a DRO does not take long to set up, and the debt collection process can take many months or even years, you have nothing to worry about.

National_Debtline

Shabbychic23 wrote: »

I was just going to pay them the minimumuntil the DRO was done and processed.

Presumably you’re doing a DRO as you can’t afford the minimum payments so don’t feel that you have to overstretch yourself. The debts will be getting written off anyway if you complete the DRO.

I agree with the others that as long as your DRO isn’t going to take a long time to set up you don’t really need to pay anything. We have a sample letter to send to creditors when our clients are applying for a DRO, asking them to hold action. You could ask Stepchange whether they have a similar letter.

James
@natdebtline