DRO Dilema - £45k debt

harmonyfishwick

Good morning everyone. I’ve finally plucked up the courage to create an account here and face my problems head on. I’ve read here for a while but I guess I was too embarrassed or scared to actually post.

 

With the new changes to the DRO I am no eligible due to the higher threshold of debts.

 

Long story short, my mother died when I was 18 and I was left to be the sole carer for my grandmother. She has never had a great income so I ended up trying to keep us afloat and deal with the cost of living and university.

 

Prior to her death my mother signed my name on to debts that’s that I have tried to clear but could not provide enough proof that it wasn’t me. Then while in university my Lloyds account was compromised and somebody took out an overdraft of over £2000. I contested it and took it to the ombudsman, and the ombudsman said ‘Lloyds won’t provide access to the security footage to prove it was not you, so we can’t take it any further’

 

Even though I had proof I was in university at the time the cloned card was used. In hindsight I wished I had fought harder to clear my name but I was 19 and not as ‘smart’ as I am now.

 

It all snowballed so I tried to consolidate the debts and I’ve been trying to pay it off few the past 10 years essentially. I’ve tried to avoid insolvency, for years as I wanted to protect my credit score as much as possible. I’ve always had to be independent because if my grandmother were to die I would like to be able to rent a property and have the ability access credit etc.

 

In 2022 I look a private student loan to fund my software engineer career, in the hopes to earn more money and change my career. I earn a good wage now, but my grand mother is expensive. Due to her disability the house needs to be warm so that cost is expensive.

 

I also pay towards care costs for my grandmother. Such as a support carer and contribute to her day centre activities as I am working.

 

In January the loan payments of Sainsburys became untenable, as they were £514 per month and the cost of living was just too much.

 

I’m 30 now and just want a fresh start. I am scared of a DRO because of the permanent note on my credit file. While I have defaulted now I have not become insolvent. I know it sounds silly but I am just so embarrassed that at the age of 30 I now have to go insolvent.

 

I have tried to speak to reduce costs as much as possible, I have written to my debtors but of course they just want there money.

 

Do you think a DRO would be the best course of action?

 ------

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

Monthly Income Details[/b]

Monthly income after tax................ 2808

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

Benefits................................ 0

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

Total monthly income.................... 2808[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 700

Management charge (leasehold property).. 0

Council tax............................. 90

Electricity............................. 150

Gas..................................... 150

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

Water rates............................. 50

Telephone (land line)................... 30

Mobile phone............................ 60

TV Licence.............................. 0

Satellite/Cable TV...................... 70

Internet Services....................... 30

Groceries etc. ......................... 400

Clothing................................ 40

Petrol/diesel........................... 150

Road tax................................ 15

Car Insurance........................... 147

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

Car parking............................. 40

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 15

Contents insurance...................... 15

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 36

Entertainment........................... 40

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

Emergency fund.......................... 0

(Unnamed monthly expense)............... 0

Adult care ............................. 200

Prescriptions........................... 30

Toiletries.............................. 30

Car lease............................... 236

Religious contribution.................. 40[b]

Total monthly expenses.................. 2764[/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

Updraft........................11893.....193.......0

Lendwise ......................6497......130.......0

overdraft......................1000......0.........0

Paypal credit..................4500......190.......0

Tesco credit card..............2600......121.......0

Sainsburys loan................19798.....10........0[b]

Total unsecured debts..........46288.....644.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,808

Expenses (including HP & secured debts). 2,764

Available for debt repayments........... 44

Monthly UNsecured debt repayments....... 644[b]

Amount short for making debt repayments. -600[/b]

[b]Personal Balance Sheet Summary[/b]

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

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

Total Unsecured debt.................... -46,288[b]

Net Assets.............................. -46,288[/b]

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

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

mancity22

Hi I'm glad to hear  that you're seeking help after struggling for some time now. 

I am new to DRO's myself so I can't advise you however I can see that you're not receiving any benefits for being your Grandmothers carer. Have you had a look to see if you're entitled to any benefits for extra income? You can find different benefits on the GOV UK website.

RAS

Have you applied for Attendance Allowance for your grandmother? It would be her income not yours. Does she get any pension?

harmonyfishwick

mancity22 said:

Hi I'm glad to hear  that you're seeking help after struggling for some time now. 

I am new to DRO's myself so I can't advise you however I can see that you're not receiving any benefits for being your Grandmothers carer. Have you had a look to see if you're entitled to any benefits for extra income? You can find different benefits on the GOV UK website.

Thank you so much for your reply, the last time I checked I was not entitled due to earning over £150 per week and working more than 35 hours per week.

harmonyfishwick

Thanks I'll look into this, I've never heard of attendance allowance!

sourcrates

harmonyfishwick said:

Thanks I'll look into this, I've never heard of attendance allowance!

It`s PIP for those of pension age.

harmonyfishwick

sourcrates said:

harmonyfishwick said:

Thanks I'll look into this, I've never heard of attendance allowance!

It`s PIP for those of pension age.

Thank you! Do you think I would be eligible for a DRO?

sourcrates

harmonyfishwick said:

sourcrates said:

harmonyfishwick said:

Thanks I'll look into this, I've never heard of attendance allowance!

It`s PIP for those of pension age.

Thank you! Do you think I would be eligible for a DRO?

Well, your giving money to the church, yet you have no emergency fund, some of your budget figures are quite high, that £44 surplus may wither away on further scrutiny.

Obviously if that is what you spend, then that is what you spend, but DRO intermediaries are giving conflicting information to some clients at present, it seems to be pot luck whether you may qualify or not.

All you can do is apply and see how it goes.

Money Wellness are the main protagonist for DRO`s now-

Contact Us (moneywellness.com)

ManyWays

Your grandmother should be claiming pension credit - is she? 
It isn't clear if your budget is for you, with your grandmother paying half of various bills, or for the two of you, in which case her income should be there as well

fatbelly

harmonyfishwick said

Thank you! Do you think I would be eligible for a DRO?

Yes. Do a DRO

harmonyfishwick

Hi everyone!

My DRO was approved today! Well yesterday.  

Thank you so much for your advice and encouragement. It has been a scary and nerve wrecking time but it is now over.

Money Wellness, were not very helpful and tried to get me onto a DMP. They didn't even really listen to what I had to say. However CAB were amazing! The process was simple and friendly with them.

I'm still in shock, but i'm excited to move on and grow from this situation... and finally sleep well!