Help/Advice pre DRO

topbiscuits

After hours of reading online, this forum & speaking to an adviser at CAB. 

I'm here asking for advice.

After many years of juggling around credit card & loan payments I've slowly (through my own dumb fault) ended up falling further into debt I've finally hit the bottom.

I have a gambling addiction and I think I've known about it for such a long time its effects don't register with me as they should do, well until now. I can't tell you why I'm like this but I've known for a number of years I have a problem that I need to get hold of.

My debts are mostly from me gambling my income and then using cc's & loans to pay for things I need. I've always worked and found a way to pay the minimum amounts knowing I'm getting worse off. Sometimes late payments but all of my debts are currently up to date but not in the coming days.

Earlier this year I changed my job after 11 stable years because I needed something new. But the new job was a subcontracting role and the project recently finished. I'm now unemployed and claiming UC, I haven't had my first payment yet but I'm going to recieve something around £767pm (1st payment due 14/12/24).

I'm not a home owner and I don't have any cash or assets; my car is valued £1-1.5k. I rent in a HA property. No children and I don't have any ties financially to anyone else so when I screw my credit file up now and for 6 years, I only damage myself!

My debts currently total roughly £20k.

I set up a cost sheet today and my monthly spending for the past 3 months is around £2k, I know that sounds high but I was spending so much on fuel working away from home, I checked my statements and it was an average £264pm. I also spent an average of £212.50 on groceries. I will list my sheet clearer below.

I'm going to address my gambling problem correctly through the right avenues. I'm embarrassed and ashamed.

I have a few questions, I understand the DRO is based on what you put forward at application. If I got into a DRO now on UC and got a job (which I will do) will I have to make sure the salary keeps me below the £75 surplus and how consistent are the checks to make sure of this? I would hate to get so far into the 12 months to then be set back to square one.

Second question is If I write to each creditor is there a realistic chance that telling them I'm to be considered 'vulnerable' based on my stupid gambling issue of getting any of my debts written off? I understand I may need GP letters and to show I'm actively trying to get better. I'm not a sob story although I've done plenty of that but from what I've read I am considered vulnerable and I am at higher risk of financially worsening my position because I have a lack of financial discipline.

The aim is to learn and never get into this position again but selfishly and ideally doing it with the path of least resistance to enjoying my life fully.

Thank you all in advance. 

Kind regards.

topbiscuits

• Credit Card - £1,859.00
• Universal Credit budgeting advance - £765.50
• Credit Card - £756.00
• Credit Card - £275.17
• Rent Arrears - £201.36
• Credit Card - £1,529.00
• Unsecured Loan / Bank Loan - £2,620.92
• Credit Card - £4,447.64
• Credit Card - £5,184.00
• Unsecured Loan / Bank Loan - £852.11
• Store Card - £218.46
• Council tax - £296.00
• Parking / Traffic Penalty Charge Notice (PCN) - £120.00
• Parking / Traffic Penalty Charge Notice (PCN) - £60.00

I also owe £1470 to family members. Theyre not actively seeking this back right now but it is to be aid back in time.

Since going back through my CC statemments and bank statements I have a better breakdown of spending and some of it is above what I discussed with CAB. I wish I hadn't made these mistakes, I feel like I carry this around with me everywhere I go, I'm scared about what job I can get becaue I need to earn so much to pay the CC & loans which comes to around £580pm without the PCN, rent arrears, council tax & family repayments.

RAS

Right now, get a new basic bank account not associated with any of your creditors (this doesn't require a credit check) Or try Starling or Monzo which can be set up on-line. Make sure your UC goes into that account.

Then ensure the DDs for the consumer debts are cancelled. You need to prioritise paying the rent arrears, Council Tax and PCNs. Although:

1. Go over to the parking forum here, read and consider if you can appeal/challenge them.
2. You need to apply to the Council separately for any reduction in Council Tax. 

Action on consumer debt take ages. Expect texts, calls and even letters, all computer generated but nothing else will happen for months. By which time you'll have some idea what the future holds work-wise.

topbiscuits

Thank you for the reply, the PCN's I'm at fault I was working in and out of Birmingham and forgot to pay the CAZ charges, it's annoying because I've correctly paid around 30 of these over a 4 month period but missed 4-5 in the last couple of week of the project I was on!

I'm not to worried about ruining my credit score for the next 5-6 years. I wont be out of work for to long but it might financially be better for me to get a lower income job for the 12 months? If my threshold says right you can have a DRO but you cant go above £75 surplus per month I need to somehow work out what that would be in a wage. I genuinley think my job would be above that and I'm fearful the DRO would revoke.

Are there any options out there for someone to sit and help maximise the SOA form, equally is the spending suppose to mirror my bank account spending or what I think I can survive on?

topbiscuits

Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 767.84
Other income............................ 0[b]
Total monthly income.................... 767.84

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 437
Management charge (leasehold property).. 0
Council tax............................. 148
Electricity............................. 90
Gas..................................... 60
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 0
Mobile phone............................ 52
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 250
Clothing................................ 40
Petrol/diesel........................... 264
Road tax................................ 14
Car Insurance........................... 80
Car maintenance (including MOT)......... 85
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 54
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 25
Entertainment........................... 120
Holiday................................. 0

Emergency fund.......................... 25

loan from family........................ 100
professional courses.................... 10
union fees.............................. 17.2
meals at work........................... 80[b]
Total monthly expenses.................. 2026.2[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0[b]
Total Assets............................ 1200[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
tesco cc 1.....................1529......45........0
tesco cc 2.....................756.......25........0
virgin cc......................4447......181.......0
PCN fine x2....................180.......180.......0
UC adv loan....................767.......32........0
family loan ...................1470......0.........0
bumper car credit..............220.......55........0
lendable loan..................852.......71........0
tesco bank loan................2620......95........0
capital one cc.................275.......14........0
natwest cc.....................5185......66........0[b]
Total unsecured debts..........18301.....764.......-  [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 767.84
Expenses (including HP & secured debts). 2,026.2
Available for debt repayments........... -1,258.36
Monthly UNsecured debt repayments....... 764[b]
Amount short for making debt repayments. -2,022.36[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 1,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -18,301[b]
Net Assets.............................. -17,101[/b]

I know some of the number will seem high, I was told to state what I spend according to my bank/credit statements by CAB. I for sure know I spend even more on going out for food and other misc things like the odd taxi. I'm well aware I'm going to cut so much and I will, I need to reset my life and my happiness.

Just to clear up a few things -

- My groceries also factors in toiletries, household cleaning prodcts & laundry.

- I live in an old terraced house with concrete floors and its always cold, I've spoken to my housing provider and they're wonderful but there aren't any smaller places available.

- My gas & electric are for the last 30 days usage on my pre paid meter.

- Entertainment inlcudes my gym contract, cinema trips, Xbox online sub, Amazon prime & Apple Cloud storage.

- I dont have or need a TV license, I podcast.

- Car maintenance was based on yearly service, MOT, tires (high milage for work & my partner lives in another town).It's a 14 year old BMW that I've had 5 years, it's never let me down but it does require the odd fix here and there which has probably been slightly more than I've budgetted for but even costing me £1000 a year to run is still much cheaper than buying another cheap second hand car not knowing the history and potential problems.

- I probably spend around £200 a year on gifts for close loved ones, roughly £20pm.

- I did holiday twice this year for 2 short stays for the first time in 5 years, I haven't budgetted for another.

- Emergancy fund as advised on other threads due to no available credit for 5 years!

- I have 1470 owed to family whom I pay £100 pm to, this isn't pressed to be paid but it is part of my debts.

- Professional courses circa £120 per year but really that can be upto £XYZ depending on which needs to be renewed.

- I was spending EASILY above £20pw on work meals.

As I say I was told to list what I currently spend.

Based on a monthly spend of £2030 & currently claiming UC I'm way short of my debts.

My perfect world is to get a DRO accepted for this £2030 figure and find a job that allows me to stay within a £75 monthly surplus. 

I'm new to this but let me give what I thought my calculation would be:

£2000pm (income after tax) x 12 months = £24,000 (after tax)

+ 20% tax = £28,800 / 52 = £553.84 (gross pay per week)

£553.84 / 40 hour working week = £13.84 per hour wage

Its a huge IF but is there a chance I could be accpeted for a DRO on these numbers I'm sure some of them will be outside of thresholds for a single occupant but a more educated person here could maybe help me edit them to reflect the same values across different catgories eg groceries cant be 250pm but they can be 200 and then add the difference elsewhere?

I might be in dreamland.. I'm just tryig to get a fresh start. I havent gambled for 3 days and although I sh*tting myself about my life I know I can only fix this if I stop gambling.