What is my best options ? Can I have a DRO?

a_silver_lining

Do you have anything you could sell or time for a part time job? My partner took on a part time evening/night Tesco job to cope for a while. It was only two shifts a week, so she was able to still sleep round it, but it brought in an extra amount that made a world of difference.

I would tackle the three smaller debts you are paying £40~50 on a month as if you clear them you will about break even on your monthly wage.

Phone and car seem expensive for your salary. How long are you on your phone deal?

fatbelly

This has been an active thread since 10 pm last night!

A hire purchase car is not an asset - until the final payment is made. So in a DRO, in your case, the car would not become an asset within the 12 month moratorium period.

A hire purchase agreement not in arrears does not have to be considered as a debt in a DRO. You could include it, and lose the car, or exclude it.

If you exclude it there is then the question of whether the monthly payments are a legitimate expense, which is why I asked for the car's value. As it is worth over £1000 it would not be a legitimate expense. So the DRO calculation would see your surplus as £418 plus £135 = £553 per month.

This is why you do not qualify for a DRO as things stand - the surplus limit is £50.

If you had your own place, paying rent, council tax, utilities, tv licence, insurances, you may well qualify. But as things stand I think a dmp is the way forward. You keep your hp agreement going and distribute your surplus to your creditors.

Stepchange and payplan are the two main providers of dmps who do not charge a fee.

Alongside this you should try to get refunds from your payday lenders and there are resources here:

https://debtcamel.co.uk/payday-loan-refunds/

fatbelly

Stepchange's explanation of how a dmp works is here

https://www.stepchange.org/debt-info/debt-management-plan.aspx

Payplan's is here

https://www.payplan.com/debt-solutions/debt-management-plans/