DRO Criteria

Wannabe2018

Thank you all.

I have submitted my honest application to Stepchange, and will follow their advice regarding what is acceptable or not.

Certainly the phone and tablet are not worth over £1000! But I admit that the monthly cost is high, so if needed I could sacrifice those and get a cheap PAYG.

If a DRO isn't for me, then I will take the help I am offered, I just want to get out of this mess now!

fatbelly

If I was taking a step back I'd say sort out the car then do a DRO.

That may mean letting logbook loans take this one and getting a new one, worth less than 1k on Parkers Guide obviously. Otherwise you will be paying £1600 for a car worth less than half that.

You still only have 14k debt as things stand so if sorting out the car lands you in further debt, then there's room for more and still have a DRO.

Other options have more problems. I hope stepchange can do the business here though they do seem to struggle with complex cases. Post again if any problems and I can make further suggestions.

ToxtethO'Grady

If I cancel them now and add the debt to the DRO, I will lose my phone and can't currently afford a new one.


You won't lose your phone the agreement is not HP you'll only lose your contract, if your phone is locked to O2 it costs a about £10-£20 to unlock it

sourcrates

ToxtethO'Grady wrote: »

If I cancel them now and add the debt to the DRO, I will lose my phone and can't currently afford a new one.


You won't lose your phone the agreement is not HP you'll only lose your contract, if your phone is locked to O2 it costs a about £10-£20 to unlock it

That`s quite correct, you do not lose your handset, only the use of the current sim card, you can either use another, PAYG sim, or as above, get it unlocked and use any.

Wannabe2018

Fatbelly; In an ideal world, I would love to do that, but I couldn't afford to purchase a new car..! I have an outstanding balance of £1424, and a settlement figure of £823 (So the car wouldn't cover the cost of the remaining credit anyway!).

Toxteth and Sourcrates; I pay the airtime plan and an o2 'Referesh' tariff (device plan) on my phone/tablet, so essentially they are on credit. Once the device plans have been paid I can cancel the contracts without penalty. If I cancel before I have to pay the full device plan off and a one month penalty. Does that make sense?


Hopefully I will hear from Stepchange soon....

ToxtethO'Grady

Toxteth and Sourcrates; I pay the airtime plan and an o2 'Referesh' tariff (device plan) on my phone/tablet, so essentially they are on credit. Once the device plans have been paid I can cancel the contracts without penalty. If I cancel before I have to pay the full device plan off and a one month penalty. Does that make sense?


The debt will go in to your DRO and you do not have to pay the full balance in 1 go it's an unsecured debt and can be paid off at a rate you can afford if you don't get a DRO

Wannabe2018

Hi All! Just an update..

I finally submitted my DRO application last Wednesday. I had to include the unsecured part of my logbook loan, but have spoken to the lender and they have happily transferred the repayments across to my mum. The payments were not eligible to be included in my monthly budget (despite being a secured debt..).

Anyway, I have this morning appeared on the register, so I just wanted to say thank you all for your help and support. My head is well and truly out of the sand now!

ToxtethO'Grady

Hope everything goes well and this time next year you'll be debt free!


Please keep an eye on the forums and you may be able to help someone else in future if they are worried or stressed about their debts.


Best of luck