Help needed regarding DMP/DRO

jimbo2010

Hi, I have debts of around 9500 and was wondering if it would be better for me to take a DMP or do a DRO? What are the benefits of taking a DMP over a DRO and the other way round please. What sort of evidence do they ask for when doing this regarding your budget. Do they ask to see copies of utility bills, rent agreements, pet insurance etc? Just took my head out of the sand today and realised what a mess I am in 😢

Brie

Bank statements are the major thing that will cover all the evidence for a budget.  So the other stuff may only be required if you are talking to a debt adviser (NationalDebtline, StepChange, Citizens Advice, CMA) who will guide you through organising a DMP or help by applying for a DRO.

In the overall scheme of things £9500 is not a huge amount of debt but these things are all relative.  Once someone has put together a solid statement of accounts (see the top stickies on the Debt Free forum) that can be submitted to the various creditors and see if they will accept a schedule of payments.

DROs need to be submitted on your behalf.  It is cleaner and quicker  in some ways but there are some basic rules.  No home owned of any sort.  No vehicle over £4k in value.  No other assets in excess of (I think)£2k.  And no excess in your budget over £75 a month.  But if done properly after a year your debts are gone.  

jimbo2010

Thanks, so I give them copies of my bank statements and they confirm what I have said in my budget, is that correct?

Brie

Bank statements are the basis as they show the ins and outs.  Many people will say "oh I only pay £XX for groceries" but the bank statements will show the trips to the corner shop for that loaf of bread, bit of milk etc that get overlooked.  Utility statements help - mostly to check that the payments are based on readings not estimates.  All the bills and paperwork will likely be wanted if you are going for a DRO because it's very important to include everything possible.  

You need to work with them - whomever "they" are.  You could do the DMP yourself if you are disciplined and are ok at basic spreadsheets.  If you want to DMP a debt adviser might get your situation taken a bit more seriously than if you work by yourself and it's good to have some guidance.  DROs need to be submitted through an official agent so they'll need all your stuff as well.  

sourcrates

I think the OP needs to go to the DFW board and read up on the sticky threads there.

Starting with this one-

In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

stu12345_2

jimbo , don't you have a length post on DFW board, where the advice points to you getting a dmp and not a dro