DRO Balance or settlement figure?

laurag411

Hi All,

Today I went to CAB to get advice about a possible DRO my question is one of the debts we have has 2 figures. The settlement figure and the balance. Now I am a bit confused, we borrowed 15,000 with an APR of 16.9. When speaking with the creditor they have given us two figures, one a settlement figure of £14,900 another the balance of £20,000. Now I am assuming the balance is the amount payable for the duration of the lending so 60 months. Can someone explain which figure will be taken into consideration when applying for a DRO as it is literally the difference between a DRO or BR. It doesnt seem right that the balance of 20k is taken into consideration as this is the duration of 5 years but right now we are not in a position to pay anything due to ill health and my husband taking an 8k pay drop as a consequence. Therefore there won't be a duration of 5 years? The guy at the CAB said its the balance but someone else i know who works in finance said that doesnt seem right.

Can anybody help please?

Thank you

Laura

DorisTrousers

The amount you owe is the amount you owe.

If you owed me £50 but were struggling I would probably accept a £1 per week. To avoid the hassle I may say give me £30 all at once and we will call it quits, I'll write the rest off. The fact is though, as we speak you still owe me £50. The guy at the CAB is right, and the other guy is wrong.

Sorry.

wba31

DorisTrousers wrote: »

The amount you owe is the amount you owe.

If you owed me £50 but were struggling I would probably accept a £1 per week. To avoid the hassle I may say give me £30 all at once and we will call it quits, I'll write the rest off. The fact is though, as we speak you still owe me £50. The guy at the CAB is right, and the other guy is wrong.

Sorry.

+1 for this

fatbelly

Agree - it's the balance. That should be the figure quoted on your credit file too.