DRO or DMP? Advice Please

ChaChaBellz

Good Evening All (or should I say Morning?)
I apologise in advance if a similar question has already been asked.

I currently have around £2500 of debt, it was originally £8k+ but over the last 4 years or so I have managed to get it down through a DMP. I also a a CCJ which I currently pay around £50 a month to.

Lately I have had a massice change of income, which is not going to improve for atleast another 3 years (I now get around 1/4 of what I used to earn) due to becoming a Student Nurse, and so have defaulted on my DMP Payment which has meant the plan has stopped.

I have recently been looking at getting a DRO as my monthly "disposable" money is <£50, but I just want some things clearing up.

Do you think a DRO will be my best option?
I know the DRO stays on file for 6 years but is that from date of approval or discharge?
How much will it affect my future prospects of Renting/Buying a house?
And How long does it take for a credit rating to start "repairing"?

Thanks In Advance

fatbelly

Hi. Taking those one at a time

Do you think a DRO will be my best option?

Impossible to say for definite but if you qualify, it's usually a good option.

I know the DRO stays on file for 6 years but is that from date of approval or discharge?

Approval

How much will it affect my future prospects of Renting/Buying a house?

It will stay on your credit file for six years, like defaults and ccjs do. At least you have an end point.

And How long does it take for a credit rating to start "repairing"?

Same answer as above really, I've known Vanquis and Provident to lend to people still in a DRO, but obviously that shouldn't happen. So if you wanted a credit card to pay off in full each month, that should not be difficult.

Your post reads like you have £2500 debt PLUS the ccj. How much do you have in total?

ChaChaBellz

Hi,

Thanks for the reply.

My CCJ is around £700 now. Ive recently requested a outstanding balance. I pay it through university rather than the courts. Otherwise I wasn't allowed to register for this new course.

Im going to try make an appointment to go and see them and discuss that I may be applying for a DRO and will be adding that debt to it if they dont have any problems with me doing so.

[EDIT] Also will I have to put my "Emergency" credit card on the DRO or can I just inform them I am that I am on a DRO.

Thanks again

fatbelly

With a DRO, you do have to declare all debts. If that ccj is from the University and you do a DRO then you are not allowed to pay them. However the debt still exists in a frozen state for 12 months. If that is going to cause problems then you may have to delay the DRO so it is worth having the conversation and let us know what they say.

If your emergency credit card has a balance on it then it's a debt and must be listed.

If it has zero balance then I see no reason why you should not continue with it, though if it's linked to another debt which is in the DRO the credit card company may cancel it. It is an unusual case and I remember some discussion about this previously - found it!

https://forums.moneysavingexpert.com/discussion/5410486