If a DRO is revoked, can I move to a DMP?

lottebagpipe

Hi all,
After months of stressing over my debts, and then ignoring them; quarantine has given me enough time to actually think about getting out of the pickle I've got myself in. Struggling with impulse buying and lack of organisation is an ongoing problem for me, and I'm a few months away on the NHS waiting list to be screened for ADHD, which my GP feels is very very likely. This may explain why my attempts to solve this haven't worked!

My debts aren't that large- £3131.73 in total. They consist of 3 overdrafts (1 at £1620 with HSBC, 2 with Halifax at £159.50 and £106.08 each), a credit card (Capital One at £197.86), a pay day loan with Lending Stream of £200 (total cost to pay off £203.28) and a Paypal Credit balance of £794.52. I also have £41 with Klarna and £9.49 with Clearpay which will be cleared next payday so not really an issue. I have been unemployed since the end of December and receive £651 a month Universal Credit. This is paid into a bank account I have with Monzo, which has no overdraft, and I specifically contacted them to ask them NOT to offer me one.

I am paying the minimum every month for everything but the overdrafts. My limits are £1500 for HSBC and £150 and £100 for Halifax, and as seen by the figures above, interest and subsequent fees have pushed me over my limit. I have multiple bank accounts from an attempt to seperate money into different accounts to control my spending and budget but alas, they offered overdrafts, and when I lost my job last summer (before gaining temporary work September to December) I ended up using these to supplement my benefits. At this point I'm ignoring these overdrafts because I simply do not have enough coming in to bring them back into the limit.

I'm aware I have options. After speaking to an advisor from GOOD (Get Out of Debt), they advised me a DMP would be a good option, but as my total debt was below £5000, they advised me to contact Step Change instead. Unfortunately Step Change are closed due to the Easter bank holiday so I can't speak to them until Tuesday. I have, however, completed their online form and got a personalised action plan. It also recommends either a DMP or a DRO. For me, the DRO is the most attractive. No payments at all, and a possiblity to have everything wiped in 12 months. I'm not overly concerned about the effect it will have on my credit rating, as my credit rating is already very poor, and quite frankly, I don't want credit anymore. I'm 28 and have no assets, or savings, or children, or job, and the likelihood of me even considering a mortgage in the next 10 years is pretty slim.

SO after giving my entire life story - my question is; if I did get a DRO, and then find employment after this Covid-19 has blown over and my DRO was revoked, would I then be able to get a DMP?

Thanks and apologies for the essay

lottebagpipe

I've filled in a SOA below:

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 0

Number of cars owned.................... 0[b]

Monthly Income Details[/b]

Monthly income after tax................ 0

Partners monthly income after tax....... 0

Benefits................................ 651

Other income............................ 0[b]

Total monthly income.................... 651[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 0

Rent.................................... 303.2

Management charge (leasehold property).. 0

Council tax............................. 43.65

Electricity............................. 20

Gas..................................... 20

Oil..................................... 0

Water rates............................. 9.62

Telephone (land line)................... 0

Mobile phone............................ 41

TV Licence.............................. 0

Satellite/Cable TV...................... 2.99

Internet Services....................... 10

Groceries etc. ......................... 150

Clothing................................ 5

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 50

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 0

Contents insurance...................... 0

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 25

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 680.46[/b]

[b]

Assets[/b]

Cash.................................... 0.06

House value (Gross)..................... 0

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 0.06[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

HSBC...........................1620......42.66.....39.9

Halifax........................265.58....1.........0

Capital One....................197.86....7.........30.34

Lending Stream.................200.......65........292

Paypal Credit..................794.52....27.35.....19.9[b]

Total unsecured debts..........3077.96...143.01....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 651

Expenses (including HP & secured debts). 680.46

Available for debt repayments........... -29.46

Monthly UNsecured debt repayments....... 143.01[b]

Amount short for making debt repayments. -172.47[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0.06

Total HP & Secured debt................. -0

Total Unsecured debt.................... -3,077.96[b]

Net Assets.............................. -3,077.9[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

sourcrates

Yes, you can do anything you like.

Stepchange are extreamly busy at present, hundreds of 1000`s of extra people are in trouble due to covid-19, your debt is all non priority, and very little will happen for many, many months, even years,  should you not service it, 3 k is not a massive amount of money to be honest, a debt relief order may be a bit overkill, and a Debt Management Plan will be better.

You are unlikely to get much response from Stepchange for quite a while, so self managing your DMP may be the best thing, to be honest, if you have the capacity to add up, and write a letter, then you don`t really need any 3rd party help.

Do a budget, work out what you need to live on, the remainder, your disposable income, can be split between your creditors, write and explain that you are in financial difficulty, and you feel a debt mangement plan is the way forward, ask them to stop charging you interest, so you can reduce the debt quicker.

Obtain their payment details, bank transfer is best, then just pay whats been agreed, on a monthly basis, until either its paid off or you get a review, simples really.

[Deleted User]

Personally I would go for the DRO, no more payments, debts wiped end of.

sourcrates

venison said:

Personally I would go for the DRO, no more payments, debts wiped end of.

Yes i agree, your budget has no wiggle room, take advantage of the DRO now while you can, and hope your situation stays the same for the full 12 months.

Try and save the £90 fee up.