Made contact to creditors to avoid DRO but no luck

Xsensed

I've got a fairly complex and long on off debt problems. I had in place about a decade ago some payments plans with reasonable rates, in the last 4 of so I've clear a CCJ, I was on the up for a good amount of time, but for for  difficult reasons, I've slipped further into debt across multiple cards and a loan. 


I've filled into my ins and outs to step change in the last few days, and it shocked me to see it all there in my face.. and the3 recommendations are DRO/Bankruptcy or payment arrangements. I'm much more keen to go for the latter.

Yet after making some calls to the creditors, im being knocked back the same no you can't kind of answers, we;ll need to keep paying full etc. These are the highest cost per month bills i have. I've asked for breathing room/freezes or reductions and they just aren't interested. One of the 5 companies I called did ask if could do and expenditure there and then, and I offer to email/post one due to time issues and they came back with that'll probably be rejected if you dont do it now. 
 
My knowledge is thin and I'm feeling seriously deflated. Is it worth keep trying to make a token payment, reasking again? or trying via email? My home situation allows me very little spare time, especially for phone calls. Did I just catch a few people having a bad day, or are these companies alot less willing given whats happening in the world, than they used to be? Seems a silly question to ask, I know they need paid, and i fully intended too but I, as many others simply don't have the funding and I want to work with them rather than go for DRO.

Grumpelstiltskin

One thing you should have learned from this experience is never phone these companies.

If you qualify for a DRO why are you against it?

fatbelly

If you meet the qualifying criteria for a dro, then there's no need for bankruptcy.

Also, if you meet the qualifying criteria for a dro, you must have less than £75 per month available to your debts.

We'd need a statement of affairs to give any meaningful help, but be aware that token offers are not a good long-term strategy

sourcrates

Creditors are always going to ask for full payment, it`s not going to help you one bit going cap in hand to them hoping for a miracle.

Where debt is concerned, you don`t ask, you tell.

If you want breathing space, you take it, if you want to make token payments, you do so, you don`t go looking for approval from anyone to do it either, you just do what is necessary, due to your circumstances.

You must be proactive and formulate a plan, then invoke it, they will work around you, trust me.

As fatbelly says, token payments are only a temporary measure, its great if you meet the criteria for a DRO, post your SOA, and we can help you further.

Xsensed

Grumpelstiltskin said:

One thing you should have learned from this experience is never phone these companies.

If you qualify for a DRO why are you against it?

Im still wrapping my head around everything and learning as I go, I guess pride and wanting to fix it, but numbers are what they are. Its seems DRO is the only way

fatbelly said:

If you meet the qualifying criteria for a dro, then there's no need for bankruptcy.

Also, if you meet the qualifying criteria for a dro, you must have less than £75 per month available to your debts.

We'd need a statement of affairs to give any meaningful help, but be aware that token offers are not a good long-term strategy

Noted thanks, posted below

sourcrates said:

Creditors are always going to ask for full payment, it`s not going to help you one bit going cap in hand to them hoping for a miracle.

Where debt is concerned, you don`t ask, you tell.

If you want breathing space, you take it, if you want to make token payments, you do so, you don`t go looking for approval from anyone to do it either, you just do what is necessary, due to your circumstances.

You must be proactive and formulate a plan, then invoke it, they will work around you, trust me.

As fatbelly says, token payments are only a temporary measure, its great if you meet the criteria for a DRO, post your SOA, and we can help you further.

Makes perfect thanks, I shall be more positive and persistent. Numbers below

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

Monthly Income Details[/b]

Monthly income after tax................ 1547

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

Benefits................................ 248

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

Total monthly income.................... 1795[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 429

Management charge (leasehold property).. 0

Council tax............................. 144

Electricity............................. 238

Gas..................................... 0

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

Water rates............................. 20

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

Mobile phone............................ 65

TV Licence.............................. 14

Satellite/Cable TV...................... 65

Internet Services....................... 0

Groceries etc. ......................... 563

Clothing................................ 20

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

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

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

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

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

Other travel............................ 150

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................................ 15

Entertainment........................... 0

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

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

Total monthly expenses.................. 1723[/b]

[b]

Assets[/b]

Cash.................................... 0

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

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

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

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

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

Rent areas.....................400.......20........0

Water arrears..................3567......0.........0

Aqua...........................4000......150.......0

02 Areas.......................113.......0.........0

Capital Bank CC................202.......10........0

SHOP DIRECT FINANCE............785.......0.........0

Lowell (store Card)............222.......1.........0

lowel (CC debt)................373.......1.........0

Argos CC.......................500.......20........0

Tesco Bank  CC.................500.......20........0

Ocean Finance CC...............115.......20........0

Capital 1 CC...................355.......25........0

118 Loan.......................4251......180.......0

118 CC.........................1900......120.......0[b]

Total unsecured debts..........17283.....567.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 1,795

Expenses (including HP & secured debts). 1,723

Available for debt repayments........... 72

Monthly UNsecured debt repayments....... 567[b]

Amount short for making debt repayments. -495[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

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

Total Unsecured debt.................... -17,283[b]

Net Assets.............................. -17,283[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

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

sourcrates

On those figures, you can actually lose a few more quid on some categories you have not covered, to get your disposable income down a bit more, to make it a safer bet, but yes, on the whole, you qualify on budget, I assume you meet the rest of the criteria as well, I would go for it, say up the £90 and get the ball rolling.

You will feel so much better once it`s in place but do remember those rent arrears will need to be paid somehow, as landlords don`t like losing out to insolvency, they could still evict you.

SusieT

I would add something small to start saving an emergency fund, perhaps £15 a month would be allowed, but make sure you put it away in a savings account so that you are not tempted to spend it if the budget is tight one month. Ask if £5 a month for presents would be acceptable, again, put it away somewhere safe so that you do not spend it for everyday things.
Also it is well worth getting contents insurance, it does not cost a lot but IF something happened and you had to replace everything (you may think you do not own a lot, but think how much everything would cost to replace.... ) you would be covered. As pointed out above, you need to make sure you can cover the rent arrears from the budget as well. Hopefully the gas and electric will not go up much more in January and your payment will get you through. 
Good luck with it 

Octagon

I’m a big fan of the Monzo ‘pots’ that offer interest for little bits of emergency savings such as the suggested £15 per month.

These interest bearing pots are actually savings accounts with external providers, provided as an add on to a Monzo account, within the Monzo app ‘wrapper’ (such as from Oaknorth Bank and Shawbrook Bank).

The rates are pretty crap (1.81% highest easy access at present), but that’s not where the magic lies.

If you want the money back, you have to wait until 5pm the next working day for the money to drop back into your main Monzo current account - meaning the money can’t be impulse spent on the spot (should you be prone to that).

(The non-interest paying Monzo ‘pots’ are just sectioned off bits of a Monzo current account and so don’t work for this purpose).

If you don’t have a Monzo, then get a mate to give you their referral link so you both get a free fiver. (You could have mine, but I think it’s against forum rules to send referral links by DM?)

Monzo account application genuinely takes tops 5 mins.

Octagon

Course, in an emergency requiring immediate financial action, you need a bank of Mum and Dad etc. willing to do a brief ‘loan against Monzo pot’ until the money drops.