DRO pre application worry.

in2deep_2

Hi, step change have recommended a DRO for 45k of mainly Ccard debt.
i have an overdraft in a joint account, what should I do about this.
How are mobile and device (in contract) handled, step change left it in my budget.?
Also this is the first month my Ccards have come off 0% and I’ve never missed a payment (switching and borrowing to keep up payments) I know this month will be very difficult to make full payments.
i also had a loan from my boss(£900) and he takes a monthly payment directly from my wages before I get it, can I leave this out of a DRO?
im the only wage earner but step change said I need my budget to give 50% of universal credit to my wife? I assume I need to put all household bills in my budget as I’m the only earner,?
im frightened to apply if I’ve got it all wrong.
step change recommended money wellness.

fatbelly

As you haven't missed a payment on anything yet it seems a bit premature to jump into a Dro.

All your debts at the date of your DRO must be included so at present both the employer loan and the overdraft must go in.

You also should treat all creditors equally in the run-up to a DRO, which would normally mean paying them all nothing. Clearly you can't pay nothing to eithet of those debts.

I suggest that you get your banking in order, which will involve each of you having an account that isn't linked to your debts, nor to each other* If you can' t clear the overdraft between you then it will become your partner-s debt.

I would suggest that you take 6 months to get everything in order. Nothing bad is going to happen. Halfway through that start talking to whoever is going to do the DRO.

*is the overdraft the only thing that links the two of you financially?

sourcrates

I agree, get the loan to your boss paid back, stop paying your other non essential debts, most important is don`t bank where you have debts, pre-preparation is everything, never just rush into a debt solution without preparing the ground beforehand.

Debt collection can take many months of standard letters and calls, take your time, prepare for this, and see how things are in 6 months as fatbelly recommends.

ManyWays

When will the loan from your boss be cleared? It would be good to get this paid before you talk to a DRO adviser as it cant be left out.
And its good to treat all your creditors equally, so stopping paying them all now is probably a good idea. Its hard to see how anyone on UC could make minimum payments to 45k of debt. 
How large is the overdraft? 
But you are getting a bit close to the 50k DRO limit so you don't want to delay longer than necessary and you have to stop borrowing any more now, no excuses, even with Christmas coming up.
Does your partner know about your finances and the need to cut back and do they have any debts?
Could you post a Statement Of Affairs now using https://www.lemonfool.co.uk/financecalculators/soa.php. Include all benefits and household bills as your partner doesnt have any income so we can see it all. 

in2deep_2

So I’m doing the wrong thing by trying my best to pay Ccards every month.?
should I try and get lower agreed payments first with each of them or just go full stop.?

ManyWays

Unless you post a Statement of Affairs we are just guessing as we dont know if you will qualify for a DRO.

fatbelly

in2deep_2 said:

So I’m doing the wrong thing by trying my best to pay Ccards every month.?
should I try and get lower agreed payments first with each of them or just go full stop.?

You're in a hole. Stop digging. Stop paying. Those debts are easy. You've highlighted the ones with problems.

If Stepchange say a DRO is the way forward it probably is. If you are on UC, you won't have much surplus

in2deep_2

When doing a SOA is UC split 50/50 ?? Because the difference in how it’s split will put me over the minimum of £75 for a DRO.

fatbelly

Joint claim. I would split it 50:50

in2deep_2

How do I split bills, almost all are in my name and I’m the only wage earner.
The rent for example, were both named on the agreement but it obviously can’t be a 50/50 split.
How does the DRO treat mobile bills? We’ve 5 children and I obviously pay them all.

RAS

Will your wife also be doing a DRO?

First thing you need to do is to organise a new basic bank account that is not linked to anyone with whom you have debt. Get the salary and UC paid in there.

And you have had your priorities wrong. You pay your essential bills, plus allowances for other living costs. 

Then you pay, or don't pay your debts.

You've probably been opening more and more credit lines trying to fund living costs after paying off your debts? Just getting into more and more debt? Stop taking more credit. Prepare to separate your accounts from your wife.

Do a proper Statement of Affairs and people can help you spot the things you've missed off, because most of the time it's those things that create crises.