DRO or DMP?

chocolatelover93

Hello

I am in about 5k debt with 3 lenders, have been to CAB today and discussed with a debt advisor. I have 2 options a Debt Relief Order or a Debt Management Plan, I'm not too sure which one to go for.

Just a bit of background, I'm 26 and have a 3 year old son. I am currently signed off work sick for depression and anxiety.
I have around 5k debt and atm paying over £100 a month towards the debt. I can't continute to pay that amount as it's making the debt get higher and I'm getting no where and eventually I won't be able to make the minimum repayments.
I have stripped everything to the bone as much as I can.

I am just concered how both will affect me and my credit score. With the debt management plan I'll be paying off the debt for years (around 22 if I paid off about £20 a year) I am currently studying with the OU so hoping to get a good job when I finish my degree.

I'm worried how both will affect me in the long run and not really sure what route to go down

Any advice will be appreicated pleased and no mean comments I know I'm in debt and I know it's my fault.
TIA
x

fatbelly

I hope I'm not going to criticise CAB in my second post of the evening...

If you qualify for a DRO then you must have less than £50 surplus - it's a fundamental criterion. You must also have no significant assets.

If you have 5k debt then your monthly payment in a DMP must be <£50 and it will therefore take >100 months to repay your debts, assuming that all interest is frozen immediately, which it won't be.

A 'reasonable period' for debt repayment is 36-60 months. So why are they saying a DMP is a realistic option?

Do a DRO, get the debt cleared and have a clean start

chocolatelover93

Thank you