Dro questions

adzam33

Hi,

I have been reading these threads for quite a while now and I am hoping you can help me.

I owe £15,800 across 4 credit cards, all this debt is due to gambling. I finally kicked the habit in April this year, haven't gambled since and more importantly I think I haven't wanted to. I look back over the years and think what the hell was I doing, but what is done is done.

I used the stepchange website and it says dro would be the best option for me. I live in council property, have no assets, no car etc. I am on benefits my husband claims ESA for us as a couple and I claim carers allowance. My daughter lives with us and works she gives me £150 keep a month.

I cant keep up with the minimum payments anymore even though as yet I haven't missed any payments because my daughter and some other members of my family help me out each month but this really isn't sustainable anymore.

I would prefer to go through citizens advice and there is one quite near me I will be going there on Monday to see if I can see someone or get an appointment.

I have a few of questions, the third one is worrying me the most.

1. I haven't got a printer so how do I go about getting my credit reports, who do I contact.

2. One of my credit card debts is with my bank so I am going to swap my bank to nationwide, would it be ok to use the switching service. I have no direct debits set up to pay my cards I just do it manually and there is no overdraft facility.

3. I have always swapped my credit cards around for 0% balance transfers, the last time I done this was in May, I done 2 balance transfers to try and keep the interest down. These were on cards I have had for years. Would those balance transfers count as preferential payments and could I be refused a dro because if this.

Sorry for the long post, thanks for reading and any advice you are able to give.

fatbelly

adzam33 wrote: »

.

1. I haven't got a printer so how do I go about getting my credit reports, who do I contact.

2. One of my credit card debts is with my bank so I am going to swap my bank to nationwide, would it be ok to use the switching service. I have no direct debits set up to pay my cards I just do it manually and there is no overdraft facility.

3. I have always swapped my credit cards around for 0% balance transfers, the last time I done this was in May, I done 2 balance transfers to try and keep the interest down. These were on cards I have had for years. Would those balance transfers count as preferential payments and could I be refused a dro because if this.

Sorry for the long post, thanks for reading and any advice you are able to give.

Go see the CAB and take it from there.

The Intermediary should get the reports. I do. If they do require you to do the donkey work you just get them as a pdf and email them on.

Yes, switch bank by whatever process. You must not be banking where you have debts whatever strategy you use.

No, those are not preferential payments because you weren't doing them with the intention of putting that creditor in a better position should you become insolvent.

adzam33

Thanks for the reassuring reply fatbelly

I will keep this thread updated as and when things happen because I've noticed other posters have been in a similar position to me but never come back with any updates of how they got on.

adzam33

I went to CAB this morning and spoke to a lady but she didn't seem to know much about a DRO she was more your first call of port so to speak, telling her what your problem was etc. I understand she cant know the ins and outs of everyones queries.

She did make a couple of phone calls while I was there to someone who said they cant help me unless I have defaulted which is fair enough. They told me to miss Decembers payment and come back then.

I asked how long does it take to process a DRO and was informed 4 to 6 months which I thought was quite a long time, I thought it might be around 6 week or so.

She then said they do have a dedicated money/debt adviser who is there every Thursday morning and you dont need an appointment to see them just sit and wait so I will go back on Thursday and hopefully speak to someone then for a bit more info and see if it really does take that long to process.

sourcrates

adzam33 wrote: »

I went to CAB this morning and spoke to a lady but she didn't seem to know much about a DRO she was more your first call of port so to speak, telling her what your problem was etc. I understand she cant know the ins and outs of everyones queries.

She did make a couple of phone calls while I was there to someone who said they cant help me unless I have defaulted which is fair enough. They told me to miss Decembers payment and come back then.

I asked how long does it take to process a DRO and was informed 4 to 6 months which I thought was quite a long time, I thought it might be around 6 week or so.

She then said they do have a dedicated money/debt adviser who is there every Thursday morning and you dont need an appointment to see them just sit and wait so I will go back on Thursday and hopefully speak to someone then.

Its important to speak to the organ grinder, and not the monkey.
Most advisors at CAB are just everyday volunteers, they do have specialist advisors, but not all the time, or at every location, so i`d go back thursday morning.

adzam33

Yes I will do sourcrates and let you know how I get on.

adzam33

I know I'm only in the early stages of thinking/applying for a dro but I honestly think it is the best way forward. I've been thinking about my income and expenditure and would be grateful if anyone could look at the figures below because I'm not sure what is or isn't acceptable.

Number of adults 3
Motability car in husband name.

Benefits 857.40
Daughters keep 150
Total 1007.40

I haven't included husbands Pip to try and keep matters simple but will obviously be included on the official income and expenditure form.

Rent 0 housing benefit which gets paid directly to council.
Council Tax 24
Electricity 50
Gas 31
TV licence 13
Landline including broadband/TV 49
Mobile 2 x 5 sim only 10
Groceries 480
Content insurance 13
Life insurance 2 x 10 over 50s life cover no cash in value 20
Water rates 49
Petrol 120
Other travel 30
Clothing 20
Hairdressers 20
Other 20

Total 948

Leaving 59 spare as a couple so half it for my surplus which is 29.50

Do them figures seem ok.

My head is spinning a bit trying to get things sorted, any advice would be grateful.

fatbelly

Husband's PIP is (a) his income and (b) is disregarded for a DRO.

I don't think you'll have a problem with those figures. Groceries looks a little high but it may include pet food, smoking, toiletries etc. I think it will be below the guideline maximum. If there are any odd regular expenses (clubs, Christmas & birthday presents, parking charges, buses, taxis, pet food, vets bills) these can be included. You're not expected to live like you're in a religious order.

adzam33

I will knock 20 off the groceries and add it to birthday/Christmas fund.

........you're not expected to live like your in a religious order.........now that made me giggle!

Thanks fatbelly.

adzam33

I went back to CAB and they have asked me to wait a month until I default on payments. I can understand their reasoning..........you haven't missed a payment so what's the problem, my reasoning was by the time the dro goes through I will have missed payments. I also understand that different organisations have different ways if working.

I contacted stepchange and went through everything with them and they said it didnt matter if I hadn't missed any payments but to stop paying now which I am going to do. She is sending me everything out in the post which I should get in a few days and a dro takes about 6/8 weeks to process.

I asked about changing bank accounts and she said I didnt need to, I bank with Lloyd's and one if the credit cards is with mbna which Lloyd's own but she said that wont matter, now really not sure whether to change bank accounts or not.

She told me to contact the credit card companies, explain the situation and give them the stepchange reference number. I would prefer to leave that for now and contact them in writing on about 10th/15th December when the payment is due, would that be ok.

When we were going through the income and expenditure she mentioned, tobacco, alcohol and entertainment are they allowed on a dro I though they wouldn't be. I phoned back and they said a small amount each month is fine for those categories, so is that ok to put a small amount down for them.

Feeling a bit stressed because it feels real now, I've got the ball rolling.

fatbelly

That all sounds good. If you are happy with your Lloyds account, stick with it.