£75 surplus income

Good morning,
Does the £75 surplus income after all monthly outgoings are paid include all the payments to the debts you want written off if you go down the DRO road?
Hope this makes sense.
Thanks

Comments

  • fatbelly
    fatbelly Posts: 20,219
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    It's surplus income without paying debts ( which you won't be doing in a dro)

    You can include your monthly payment to council tax even if some of that is being covered.
  • fatbelly said:
    It's surplus income without paying debts ( which you won't be doing in a dro)

    You can include your monthly payment to council tax even if some of that is being covered.
    Thanks very much fatbelly.
    So just to make it clear as I’m not the sharpest, say debt repayments are approx £250 per month , they’re not taken into account to get you inside the £75 surplus ?
    Thanks again.
  • sourcrates
    sourcrates Posts: 28,526
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    You do not include credit payments in your budget.

    A DRO is designed for those who have basically no money to pay there debts after taking into account all essential spending.

    So say your monthly income is £1200, and you have debt payments of £280 per month to service.

    Your essential bills, not including debt repayments, amount to £1.160.

    That would leave a disposable income of £40, and a shortfall for debt repayments of £240.

    So your £40 disposable income fits nicely within the £75 per month limit.
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  • You do not include credit payments in your budget.

    A DRO is designed for those who have basically no money to pay there debts after taking into account all essential spending.

    So say your monthly income is £1200, and you have debt payments of £280 per month to service.

    Your essential bills, not including debt repayments, amount to £1.160.

    That would leave a disposable income of £40, and a shortfall for debt repayments of £240.

    So your £40 disposable income fits nicely within the £75 per month limit.
    Thank you very much for explaining that way, appreciate it.
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