final role of the dice

mum2one

I must have started about 3 or so I'm going to be debt free heres my plans over the years and each one has failed, for a 1001 reasons.

After a long hard year, I helped nurse my father when he had cancer, he recovered from then they found secondary cancer, he lost his battle in May last yr, its 8 months to the day....

Me...
My income is benefits / tax credits etc, I doubt that will change in the near future, been this way for a while.

Financially I have been with stepchange, but due to changes in income / circumstance, its been a mix of head in the sand / pay £1 a mth here there and everywhere.


In reality I owe a few quid.... some of it was irresponsible lending, a lot of it was interest, robbing Peter to pay Paul. I hold my hand up and this needs sorting.

My options are - literally pay £1 a month - for life... or a DRO... my biggest creditor is 7k, others are £100 upwards to £1k... at a rough estimate its 12 to 15k.

I dont own a house - carer for my mum - when anything happens to her the house will become mine with a share to my daughter.

My car is less than 1k

I have less than £50 a month after living expenses etc.

.......................
My next steps

Get a copy of credit - dont know where half the debts are / and how much is owed

Check budget

Contact stepchange and see where we go....

sourcrates

Soon as i started reading your post i thought Debt relief order candidate if ever i saw one.

Check all three credit reference agencies, as you need to list every debt, and the full amount owed (this is to make sure you dont go over the 20k limit).

Check, and treble check that budget, its ok to have nothing left after bills, infact thats preferable than having a balance left over, make sure you budget for every last little thing, and write it all down, as per stepchange record budgets, so you have everything ready.

It really is a very simple process, after going over things on the phone with you, if you qualify, they will put it all in writing, and send a form to be filled in, you return that, with details of your debts etc, everything is finalized, you pay your £90, then its submitted to the insolvency service.

As long as SC have done everything correctly (with is normally the case) your DRO will be approved, (basically, at the beginning, if they say you qualify, then it should be approved) usually withing 48 hours or so, dependent on how busy they are, then thats that, 12 months later, as long as you dont win the lottery, you will be free of all your troublesome debts.

mum2one

Sourcrates - thank you so much.

Would I be better writing to all the agencies for credit files xx

National_Debtline

Hi

I agree a DRO sounds like a good option for you to get a fresh start. You can check your Call Credit file for free on www.noddle.co.uk, and your Equifax file for free at www.clearscore.com .

You can check a statutory copy of your Experian file for £2 on www.experian.co.uk/consumer/statutory-report.html

This DRO factsheet is worth reading through for an overview:

www.nationaldebtline.org/EW/factsheets/Pages/debtrelieforders/droadvice.aspx

James
@natdebtline

sourcrates

mum2one wrote: »

Sourcrates - thank you so much.

Would I be better writing to all the agencies for credit files xx

No, do as James and I suggest, and get copies of your credit files, you will have it all there in front of you, rather than waiting for a string of DCA`s (who will have no interest in helping you, as there not going to get paid) to send you a statement each, which could take months.

Use the links James has posted for you.

You will need to ring each one and get a final exact balance off them, nearer the time anyway, but this can just be done verbally over the phone.

mum2one

Managed to get into clear score - adding up all the creditors it comes to £17427...


But this is the problem

When my father passed away I was the one to arrange the funeral, - we were told at the time (dpw) that we would be entitled to £2k grant.... but as they gave mum some of dads state pension it took her over the limit.

The funeral was £3120 - pd £250, were due to pay £200 in Feb awaiting grant of £750

Based on febs payment and the £750 grant this would take the debts to 19147.

Do I hold fire for another month or so pay £1 each to my creditors - then march apply for a dro.

X

fatbelly

Hi mum2one

Not all your creditors will appear on your credit record - you will have to add in any other debts, like rent arrears, council tax, benefit overpayments, utility debts and any that (for a variety of reasons) do not appear.

It's your Experian report that your DRO intermediary has to have and it can speed things up if you already have a current hard copy to hand to them.

I wouldn't bother with the £1 but yes the funeral debt must go in if you are liable and if you need to wait until the grant takes your total back below £20k then do so.

But these things do take time anyway and so you need to press on with your DRO or, if over 20k, bankruptcy.

mum2one

Thank you, touch wood all utilities are up to date, no benefit overpayment.

We've had a set back with the funeral grant - we're not entitled to the £750, so bill stands at 2870 which with my details takes it just over 20k

But ... mum will pay some off it... think be £300 over next 2 maths,

Experian - I'll order a hard copy - that will give me an accurate picture,

If I can get it down to £1950 would that be nit enough leaway x

National_Debtline

If you can get the debt level under £20k you should be ok as long as your creditors aren’t adding interest. If they say they’re going to add interest send this ‘hold action’ letter asking them to freeze interest and give you time to take advice on your options.

www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

James
@natdebtline

sourcrates

mum2one wrote: »

Thank you, touch wood all utilities are up to date, no benefit overpayment.

We've had a set back with the funeral grant - we're not entitled to the £750, so bill stands at 2870 which with my details takes it just over 20k

But ... mum will pay some off it... think be £300 over next 2 maths,

Experian - I'll order a hard copy - that will give me an accurate picture,

If I can get it down to £1950 would that be nit enough leaway x

As long as your qualifying debts are less than 20k when you apply, you should be ok.

Any charges or interest added during the DRO, are written off at the end of the monotorium period, along with the original debt.

So as long as your under the limit at the start, that's the key thing you need to be sure of.

mum2one

National_Debtline wrote: »

If you can get the debt level under £20k you should be ok as long as your creditors aren’t adding interest. If they say they’re going to add interest send this ‘hold action’ letter asking them to freeze interest and give you time to take advice on your options.

www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

James
@natdebtline

Thank you, - touch wood there all at 0% x