Lost all - will start with DRO - if that help ?

f4n4tyk

Hello everyone, I am looking for help in a difficult life situation I am facing.

I lost my job and I have big problems paying off my debts. I do not know what to do. I'm thinking about Dro but I don't know if he qualifies. I haven't had a job for 3 months and I live on a Polish pension of GBP 415 a month!

My son helps me, but this help will end. I currently have 13,500 in debt

bank loan

2 credit cards

and a phone which I still manage to pay off and I have a contract until September 15, 2024.

I have a bank account in England and in Scotland, where I lived for a few months for work.

My current savings are around 2,400 in an account in Scotland and 300 in an account in England. My monthly fees (for the apartment + overdraft) are about GBP 750.. I don't count life. I don't know what to do... I can't take up a job because everyone says it's hard to find a job, given my age I can't count on an English pension. please help me, can Dro help me?

RAS

Do you have settled status in the UK? What is your age?

f4n4tyk

RAS said:

Do you have settled status in the UK? What is your age?

yes i have and is 70 at this year

RAS

Ok, even if you do a DRO, that's not going to enable you to live on your current income.

You need to find out if you are entitled to any state pension for the years you worked in the UK www.gov.uk/get-state-pension
 
You may not be entitled to much, but you may be able to then apply for Pension Credit, to top-up your income. This is worth it even if you are only awarded 50p, as it entitles you to lots of other things free or at reduced cost. You may also get help with housing and Council Tax. Check www.turn2us.org.uk

Mean-time, you need a new basic bank account. Try the Co-op, Monzo or Starling, before you stop paying your overdraft. Get your Polish pension paid in there, and anything the UK government awards you.

Make sure your savings are not with any bank that is related to the ones with which you have debt.

Then you can look at a DRO.

f4n4tyk

RAS said:

Ok, even if you do a DRO, that's not going to enable you to live on your current income.

You need to find out if you are entitled to any state pension for the years you worked in the UK www.gov.uk/get-state-pension
 
You may not be entitled to much, but you may be able to then apply for Pension Credit, to top-up your income. This is worth it even if you are only awarded 50p, as it entitles you to lots of other things free or at reduced cost. You may also get help with housing and Council Tax. Check www.turn2us.org.uk

Mean-time, you need a new basic bank account. Try the Co-op, Monzo or Starling, before you stop paying your overdraft. Get your Polish pension paid in there, and anything the UK government awards you.

Make sure your savings are not with any bank that is related to the ones with which you have debt.

Then you can look at a DRO.

Thank you for your answer. My situation is a bit complicated because I came to the UK 12 years ago to help my son with the children. I stayed at home for a very long time, took care of my children, then went to my friends' houses to see their children. After some time, I worked casually for a few hours at an agency. I had a permanent job for 3 years where I earned really well. However, since the company went bankrupt, I was dismissed.

As for the debts, it's a Barclays credit card / I have a loan at Lloyds and I have no savings / Argos card / At Bank of Scotland, where my payment came, I only have money in my account, about £2,150, I don't have any debt there or a credit card.

As for the retirement benefit, we have already paid, unfortunately I am not entitled to the English pension because I have not paid any contributions.

I currently live with my son, so the costs of housing and living are much lower. I only need it to travel and now to pay off debts.

If I applied for DRO and entered the bank where I have a DRO loan, would it block all my accounts? Do I also have to close this account in Scotland or burn the money?

Brie

First find out if you can get pension credits.  That might give you enough to live on and maybe even pay the debts over time.  If you work with an organisation like CAB, StepChange, NationalDebtline or a Community Money Adviser they might be able to help with the pension credit application as well as talking to the organisations to whom you owe money.  What they might suggest while you wait on the pension credit application is to agree to a token payment to the creditors.  £1 a month each is not uncommon but they will expect that you won't have much or anything in the way of savings.

The reason I say to look at getting the pension credit before doing anything about a DRO is, as others have said, your income isn't enough to really support you and pay the debts.  So once the pension credit is in place and if you still don't have enough to pay off the debts you might look at a DRO.  If you do it the other way around and you get pension credits after the DRO is in place it would mean there was a substantial change in your circumstances and the DRO would be cancelled.  

I do suggest that you get a basic bank account with someone other than Barclays/Bank of Scotland/Lloyds and whomever runs the Argos card.  So maybe Santander or Nationwide?  I don't think they are associated with any of the banks.  That way if you have money in your new account none of your creditors can touch it.  

RAS

Ring London Spark. They offer Citizen Advice in Polish  to any Pole in the UK only Tuesday and Wednesday on [Removed by Forum Team]. They close at 5pm today.

Have you checked pensions credit? Or help with housing costs. BECAUSE as long as you have the right to reside, you're eligible for both. They are means-tested, so would add to your Polish pension. 

Have you checked if you can get a free bus pass? How much are your living costs, excluding the overdraft cost?

You say you have savings of over £2000 in Scotland, or is it in the Bank of Scotland and about £300 in another bank? If you do a DRO those need to be basic accounts with no overdraft facility, and there's a chance that they'll be closed if you do a DRO and they aren't insolvency friendly.

If your living costs for £340 or more per month, then you could be eligible for a DRO. Those costs include food, utilities, medical and dental, clothing, local transport costs, a cheap holiday, but wouldn't cover things like frequent travel to Poland. But that doesn't mean that you can afford live on your Polish pension if your living costs are over £415 per month.

You would need to get your total savings below £2,000 to be eligible for a DRO. But that doesn't solve your long-term lack of income. 

f4n4tyk

RAS said:

Ring London Spark. They offer Citizen Advice in Polish  to any Pole in the UK only Tuesday and Wednesday on [Removed by Forum Team]. They close at 5pm today.

Have you checked pensions credit? Or help with housing costs. BECAUSE as long as you have the right to reside, you're eligible for both. They are means-tested, so would add to your Polish pension. 

Have you checked if you can get a free bus pass? How much are your living costs, excluding the overdraft cost?

You say you have savings of over £2000 in Scotland, or is it in the Bank of Scotland and about £300 in another bank? If you do a DRO those need to be basic accounts with no overdraft facility, and there's a chance that they'll be closed if you do a DRO and they aren't insolvency friendly.

If your living costs for £340 or more per month, then you could be eligible for a DRO. Those costs include food, utilities, medical and dental, clothing, local transport costs, a cheap holiday, but wouldn't cover things like frequent travel to Poland. But that doesn't mean that you can afford live on your Polish pension if your living costs are over £415 per month.

You would need to get your total savings below £2,000 to be eligible for a DRO. But that doesn't solve your long-term lack of income. 

As for the pension, I am not entitled to it because I did not work here at least. I have worked for less than 2 years and I still receive a Polish pension.

I have a free travel card in Scotland. Where I commuted to work.

In England, where I live now, I have an account with Lloyds and it has an overdraft option

An account in Scotland is not an option, I just keep the rest of my savings there, I keep my Polish pension in a Polish bank account or I withdraw it and buy GBP at an exchange office in Poland when I'm on holiday

Currently I live with my son so I don't pay for anything, but 415 GBP is not enough because I have to buy some clothes or shoes. I also have a subscription phone. I try to contribute to the apartment as much as I have left, but it is small amounts, 50-100 GBP per month.

The question is, when I apply for a road trip, do they have access to my fuel tank? I don't know how long this application and confirmation process will take. As of today, I have 2150 GBP at the end and it is constantly decreasing. I try to spend as little as possible only on necessary things. I understand that for the amount to be confirmed on the account, I cannot have more than 1,999 gbp?

stu12345_2

take some cash out the bank and keep it in your wallet,  if you want to lower your bank account, then buy a month's of food, nobody is asking what you have in your wallet.
but a dro can still be rejected if it's a negative income, eg, it won't work as you still won't have enough to live on.
as others said you need to claim top up benefits first and take it from there .

as if you do consider a dro,  you need to supply copies of bank statements and, income , pension , benefit details. and outgoings like rent

then you need to make sure nothing changes for a year, no increases that will cancel a dro and leave you back to square one, still owing your creditors

fatbelly

Those debts are not the main issue. See if you can claim Pension Credit

https://www.gov.uk/pension-credit

Danien

f4n4tyk said:

RAS said:

Ring London Spark. They offer Citizen Advice in Polish  to any Pole in the UK only Tuesday and Wednesday on [Removed by Forum Team]. They close at 5pm today.

Have you checked pensions credit? Or help with housing costs. BECAUSE as long as you have the right to reside, you're eligible for both. They are means-tested, so would add to your Polish pension. 

Have you checked if you can get a free bus pass? How much are your living costs, excluding the overdraft cost?

You say you have savings of over £2000 in Scotland, or is it in the Bank of Scotland and about £300 in another bank? If you do a DRO those need to be basic accounts with no overdraft facility, and there's a chance that they'll be closed if you do a DRO and they aren't insolvency friendly.

If your living costs for £340 or more per month, then you could be eligible for a DRO. Those costs include food, utilities, medical and dental, clothing, local transport costs, a cheap holiday, but wouldn't cover things like frequent travel to Poland. But that doesn't mean that you can afford live on your Polish pension if your living costs are over £415 per month.

You would need to get your total savings below £2,000 to be eligible for a DRO. But that doesn't solve your long-term lack of income. 

As for the pension, I am not entitled to it because I did not work here at least. I have worked for less than 2 years and I still receive a Polish pension.

I have a free travel card in Scotland. Where I commuted to work.

In England, where I live now, I have an account with Lloyds and it has an overdraft option

An account in Scotland is not an option, I just keep the rest of my savings there, I keep my Polish pension in a Polish bank account or I withdraw it and buy GBP at an exchange office in Poland when I'm on holiday

Currently I live with my son so I don't pay for anything, but 415 GBP is not enough because I have to buy some clothes or shoes. I also have a subscription phone. I try to contribute to the apartment as much as I have left, but it is small amounts, 50-100 GBP per month.

The question is, when I apply for a road trip, do they have access to my fuel tank? I don't know how long this application and confirmation process will take. As of today, I have 2150 GBP at the end and it is constantly decreasing. I try to spend as little as possible only on necessary things. I understand that for the amount to be confirmed on the account, I cannot have more than 1,999 gbp?

Pension credit isn't about whether you worked or not, it is based solely on your income. If you have indefinite leave to remain, habitually resident pre settled status or from EU settlement scheme, or citizenship here, then you should be eligible to claim it. You don't have to have paid into anything, you just have to be a pensioner on a low income.