Phone Upgrade due and DRO

Sweet_Treats

Hi Guys, 

I’m looking into a DRO as it’s looking the option that’s best for me and my situation at the moment. 

I’ve spoken to National Debt Helpline and I’m at present putting together a budget and collecting all my info credit reports etc. 
However I have a EE phone contract that ends September and I am now due an upgrade. 

I am up to date with my payments so would not be including this in my DRO. 

So what I would like to know is am I ok to go for an upgrade now, or will it look bad and go against me if I do do down the DRO route. 

I asked for advice on this yesterday on the National Debt Helpline Chat and was advised they can not give me advice on this matter. 

Any advice would be appreciated. 

Thank you. 

molerat

What is wrong with your current phone ?  Get a SIM only contract with the current phone.

Sweet_Treats

The battery is not great plus grandkids have bashed it up. So I’m thinking in the long term cost wise for me.  Plus  would I even get another contract with a new phone once I’m in a DRO. I would not be able to affordable a new phone once I’m in any debt plan or DRO. 

sourcrates

"National debt helpline" are a lead generator for an IVA firm, so don`t be surprised if they start to steer you in that direction.

You really should not be taking advice from a company that is trying to sell you something, they don`t do DRO`s, but may charge you to refer you to one of their partners, who does.

I realise its not what you asked, but best advice I can give you is to ditch this firm, and get advice from one of the debt charities in my signature.

Re : the phone upgrade, there is no reason you cannot upgrade the phone as long as the cost stays the same, you can do what you like with it at the moment, you are not giving away assets nor favouring individual creditors, so its a non issue, for DRO purposes.

Sweet_Treats

Hi sourcrates, 

Thank you for the advice. Sorry I meant National Debtline are advising me. I found them via the government website for debt advisers. 

I will look at what deals EE are offering me regarding my phone. They also offer a new flexi plan now where your bill is spilt into 2. Phone and then usage. Is that still ok? 

sourcrates

You need to be sensible here, a DRO is a form of insolvency, any company you owe money too, that is not included in your arrangement, may cancel a contract with you if you become insolvent, if they find out about it, and they don`t like it.

Now phone companies are usually OK, as long as the bill is being paid, but you should not be taking on new commitments for expensive handsets, as -

(1) your intermediary may not allow an expensive handset as a legitimate expense

(2) it could take you over the £75 disposable income threshold

If the handset is a free upgrade, then fine, but switch to the cheapest tariff, or go PAYG.

Because a £20 quid a month mobile bill may be acceptable, £120 a month won`t be.

Sweet_Treats

Thank you, so I pay £51 per month and could bring it down to £43 with a new phone. So EE spilt your contract in to 2 parts. Phone and then usage. It comes up as phone is over 36 months interest free credit agreement. Then the essential plan for my usage. It’s the credit agreement part I’m worried about. Or is that how all phone contracts work out. 👍