My (DRO) Debt Relief Order Diary

RestlessOverDebt

My (DRO) Debt Relief Order Diary

With almost £18,000 debt, and being long term unemployed due to ill health, I had been paying each of the eight creditors £1 per month token payments, over the last four years.  Whilst I am grateful for them accepting these token payments, my debts kept being taken on by different debt collecting agencies, which meant receiving phone calls and letters and having to explain my situation (including personal health problems) every time to different people from these companies.

I decided to apply for a Debt Relief Order through an approved intermediary, I met the criteria and my application for a debt relief order was accepted mid-June 2020.

I have mixed emotions about this: I feel a hundred weights have been lifted off my shoulders; a real sense of relief... almost disbelief. I had initially resigned to the fate that I will be living in debt for the rest of my life.

I also feel anxious that the DRO is to good to be true and that something could go wrong and it be revoked (although a change in my personal circumstances is highly unlikely).

Finally, I do feel a level of guilt, as the credit taken out over 10 years ago was given to me in good faith, before my health deteriorated, I was working and made payments without fail until I had to give up work about four years ago.

I would be interested in hearing from anyone that has successfully been through/completed a DRO.

Thank you for taking the time to read this, and I will update in due course.

Kind regards

RestlessOverDebt

sourcrates

Hi,
DRO, and IVA, and yes I’ve been insolvent twice in my life, and both times we’re due to circumstances beyond my control.

Guilt is a luxury few can afford, situations change, sometimes very quickly, in my case a marriage breakdown, and a partners work injury.
Creditors build this into there lending criteria, so don’t feel guilty, these options exist, curious to know why you waited 4 years ?

After the 12 months, your debts will be wiped, and you will be free to start again, nothing affects you forever, nor should you be defined by your past mistakes.
Good luck, 

RestlessOverDebt

Hi sourcrates

Thanks for your prompt reply and words of wisdom.

I was in denial about my whole situation; and foolishly was ‘simply’ grateful that my creditors were accepting token payments. With hindsight, I should have applied for a DRO back then.

Thank you for sharing your experience to help others

Kind regards

RestlessOverDebt

MalMonroe

Hi,

First of all, I have to say congratulations for taking the first very scary steps to improving your life.

A similar thing happened to me. My circumstances changed and I was in terrible debt for quite a few years. I didn't even know about DROs until I phoned StepChange (CCCS back then). I was in £15k of debt and like you was paying token £1 per month offerings to my creditors for ages. It was such a relief to speak to one of the advisers at StepChange. There was no judging and no blaming and for the first time I really felt there was a way out of my terrible financial situation.

I was granted a DRO seven years ago and like you I did feel guilty but I knew I wasn't ever going to be able to pay off all my debts and was sinking into a terrible depression. Having the DRO taught me to manage my finances better too, as my new bank account didn't allow any overdrafts (I had previously just been living on my large overdraft) and I soon discovered that, contrary to my old belief that I was rubbish with money, I was actually quite good at budgeting. I have successfully lived through it and it wasn't too bad. Now my credit report is just as good as anyone else's and I can assure you that if you take care (my major fear was that my bank account would go into overdraft! I made sure to check it online almost every day until I got the hang of managing money) you'll be absolutely fine. After the first year it's removed from the Insolvency Service Register and then things start to get easier, although of course it does remain on your credit file for a further five years. I was able to get a credit card for bad debt after that first year, though and just used it to build up my credit reputation, paying it off in full every month as Martin recommends.  

Try not to feel guilty. It's not something you intended to happen and now you have an opportunity to get back on your feet. For me, it was definitely worth it. Good luck! But I don't think you'll need it.

RestlessOverDebt

Hi MalMonroe

Thank you for sharing your experience and kind words.

I found it inspirational to hear how you have been through the DRO, and in the process managed to take control of your finances.

It is hard to believe that after the 12 month moratorium period I will finally be debt free. I know my credit will be badly affected for 6 years, but it already has been for some years now. Hopefully I will learn from my past experience and grasp the opportunity to start a new chapter in my life; debt free.

Kind regards

RestlessOverDebt

1977dave

I was 13k in debt, I haven't worked in 18 months and I'm on Universal Credit due to injuring my back and a couple of other issues.
I'd never been in debt before up until 2017 and I tried to maintain things and kept on looking into bankruptcy after believing I wouldn't be eiligible for a DRO. 
I applied for the DRO and it was granted, I'm now 6 months into the DRO and because of COVID it's looking likely that I won't be returning to employment for a while. So I've spent this time ensuring that all my creditors have defaulted my accounts and ensuring they have the correct default dates.
All but one of my creditors had the incorrect default date, one hadn't even defaulted my account at all, so rather than wait until the DRO has completed and clean up my credit file, I've done it now, so now it's just a matter of waiting until January when the 12 months completes.

The fact that you've faced up to your debts is commendable and that you've taken action. There's only so long you can carry on for before you admit to yourself you can't manage, I had too much pride, but I had to swallow my pride otherwise it affects you more than you might realise

Wishing you the best of luck 

RestlessOverDebt

Hi 1977dave
Thank you for your reply and kind words.
It's a good idea using this time to contact the creditors to ensure the default dates have been correctly applied. I shall wait a while and do the same, as i'm only 6 weeks into it.
It had taken me four years to seek a proper debt resolution, to be honest I was grateful that the creditors were accepting £1 token payments, however, i finally admitted to myself that I had become overwhelmed by debt and it was having a negative impact on my health and well-being.
I am glad you had been approved for a DRO, and in just 6 months time you will be free of the debts.
Kinds regards
RestlessOverDebt

RestlessOverDebt

DRO granted last month.
Checked my credit report yesterday; the largest credit card (debt) has been 'closed' and marked as 'satisfied'
I wasn't expecting this to happen until the end of the moratorium period. No changes to the other ones though. Was wondering if that provider had been super efficient,or had they made an error? I guess on the grand scheme of things it's irrelevant.
Kind regards
RestlessOverDebt

reliquit

£48k of credit card debt here. Ticking along nicely as we had annual joint income of close to £100k and a plan (actually a spreadsheet) projecting that we could clear our debts by the time we both retired in 2016. Unfortunately in 2010 my wife became ill and was forced to take early retirement, so her income was reduced to a small occupational pension, and in 2012 it was clear that she could no  longer care for herself throughout the day so when I had the chance of early retirement I took it, to become her full time carer - and my income reduced accordingly. We struggled on trying to maintain payments, but it was soon clear that we could not do so and in Feb 2014 we entered into an IVA - which finished in Feb this year.

Now we are both receiving our state pension which has effectively doubled our income, and we have learned how to adapt to our changed circumstances - and the peace of mind which comes with that is fantastic.

Don't give up - you'll get there.

RestlessOverDebt

Hi reliquit
Thank you for sharing your experience and words of encouragement.
Sorry to hear about the health issues and how this affected the employment of you both. Poor health is most certainly something in which I can relate too; I have multiple health problems and rely on 14 tablets and 2 injections a day.
I am pleased to learn that your IVA completed in February this year, that's great news... Congratulations.
Due to my debt. I have lived the past four years without access to 'credit of any kind' so I too have adapted to the change of my circumstances over those years. Once the DRO 12 month moratorium period ends, I will have a fresh start and wont allow myself to get in debt again.
Kind regards to you both.
RestlessOverDebt 

MalMonroe

RestlessOverDebt said:

Hi MalMonroe

Thank you for sharing your experience and kind words.

I found it inspirational to hear how you have been through the DRO, and in the process managed to take control of your finances.

It is hard to believe that after the 12 month moratorium period I will finally be debt free. I know my credit will be badly affected for 6 years, but it already has been for some years now. Hopefully I will learn from my past experience and grasp the opportunity to start a new chapter in my life; debt free.

Kind regards

RestlessOverDebt

Thank you, I'm glad I was able to help. It feels corny to say it wasn't all a bed of roses and I did struggle a bit but that was because I'd never been used to managing a budget before. I think these things should be taught at school, rather than a lot of the rubbish we did have to learn about! However, once I did start taking control of my spending and ensuring that my bank account never went into overdraft - as someone who had been living on my overdraft I found that quite challenging - things felt easier. And of course, having the big debt lifted from my shoulders was such a relief. I'm sure you will be fine. If I can do it, anyone can! 
Kind regards to you x