Advice on dro

jack_bauer19

Hi just a bit of advice needed
im considering really sorting my debts out
my spending as spiralled out of control and a really need a fresh start. im lookin into a dro what someone told me about so
just any information a can get off here
would be much appeirated.

I have posted a soa
basically all the debts we have are in my name alone
we have no joint debts or nothing
my wage is just carers allowence
the benefits is what my partner gets
universal credit
disability allowence for our child
child benefit

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 286
Partners monthly income after tax....... 1385
Benefits................................ 1160
Other income............................ 0
Total monthly income.................... 2831

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 800
Management charge (leasehold property).. 0
Council tax............................. 120
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 12
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 120
Road tax................................ 12
Car Insurance........................... 80
Car maintenance (including MOT)......... 20
Car parking............................. 10
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 20
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Partners car finance.................... 200
Total monthly expenses.................. 2524


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loans..........................8000......270.......0
catalogues.....................4000......100.......0
credit card ...................3000......50........0
Total unsecured debts..........15000.....420.......-


Monthly Budget Summary
Total monthly income.................... 2,831
Expenses (including HP & secured debts). 2,524
Available for debt repayments........... 307
Monthly UNsecured debt repayments....... 420
Amount short for making debt repayments. -113

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -15,000
Net Assets.............................. -15,000

fatbelly

On the one hand, it looks like, as a couple, you could pay these debts through a debt management plan, in around 4 years. Possibly less if you can cut expenditure on clothes, presents, entertainment. And have more to throw at the debts when the car finance finishes.

On the other hand, if your personal income is only a small proportion of the joint, and DLA is not counted in a DRO anyway, then you would probably qualify for a DRO. They are done through an approved intermediary, which means you will need to link up with one of the main debt charities. CAB and stepchange do most of them.

jack_bauer19

thank you
would i have to make payments monthly
or as my income in so low
i wouldnt
prefer the dro over debt managment plan tbh

fatbelly

The DRO is a one-off payment of £90, which can be paid in instalments at a Post Office.

There's no ongoing payment.

In a debt management plan you make payments until the debt is repaid. Stepchange (or Payplan) can do both options - have a chat with one of them. Or National Debtline if you just want an independent view.

If both options are on the table, with 15k debt, I'd go the DRO route.

Your soa did show too much surplus income but I suspect once an intermediary got to looking at it in detail, you'd be OK.

jack_bauer19

hi ye a did cut things way down on soa
realisticlly a spend more on food hair cuts et
with the surplus i have nothing left i give everything to my partner
a dont want her be effected by this on her file if it does id after try to find another alternative

fatbelly

As long as you do not have a joint financial product like a joint bank account or a joint loan, she won't be affected.

As a couple with 2 children, £500 per month on food & housekeeping and £20 on hair are both fine.

It's just that for accounting purposes, your income is about a tenth of the total household income (and you can take out any DLA from that), so they would only allocate a tenth of the expenditure and you would only show a tenth of the surplus, which wouldn't be very much at all.

jack_bauer19

righr so say say a 10th of my wage say 25quid
that what i would pay for a year in a dro

also we have had joint bank account and loans in the past about a year or go or so

fatbelly

jack_bauer19 wrote: »

righr so say say a 10th of my wage say 25quid
that what i would pay for a year in a dro

also we have had joint bank account and loans in the past about a year or go or so

No, you don't pay anything in a DRO - just the application fee which is a fixed £90

There's some brief guidance here

https://www.gov.uk/government/publications/getting-a-debt-relief-order/getting-a-debt-relief-order

Don't worry about the detail of the calculation - just give the figures to your intermediary. There's a list of organisations in this document.

If you are linked on your credit file to your partner, and it sounds like you are, then your insolvency will affect her rating. If you are both settled in your rented place and not looking to move or get a mortgage then it doesn't really matter.

Any joint loans will have to go in your DRO but she will become liable to pay them.

jack_bauer19

hi thank you nnn ye we have had joint accounts in the past but i closed them a while back and joint loans the loans r now paid off
so all the debt now is just in my name

nn reason i ask is
we want to move n rent somewere else in next year or so and a didnt want us both to have bad credit
because she now as excellent credit.

fatbelly

If you have no joint products now, you may be able to disassociate.

https://www.experian.co.uk/consumer/financial-connections-questionnaire.pdf

jack_bauer19

thank you so much fat belly����
if not possible would we find renting hard even with a gurantor