DRO confusion

7Cyanide58

Hi all, 

Firstly, apologies if this is in the wrong place. 

So I've been a bit stupid and helped people over the years by using my credit in my name, then got royally screwed when they didn't pay so ended up paying out of my own pocket. 

The thing is I'm now getting to the point where people have borrowed and I'm unable to pay it back. I know I've got myself into this mess and totally my fault and you live and learn. 

I have been looking at a DRO through step change, but I don't understand some of the wording and I want to have as much information as possible before I decide to go through with it or struggle until everything is paid off. I have put all my circumstances below to try and help as much as possible. 

1. Step change says that I must have less than £75.00 a month to repay my debts during the 12 month period? The thing is once I sign a DRO and don't have to pay my creditors I will have well over that amount a month therefore the DRO will be cancelled?

2. In my application I have stated that rent payments and payments to my creditors, was this the right thing to do? Should I be listing everything apart from my credit payments? 

I know that this probably has been asked before and is listed in step changes website and I've probably missed it. 

* I work full time 
*Income is £27000 PA or £1937 PM
*currently living with parents
*I owe around £18000 all in

Any help would be appreciated, please be gentle 

fatbelly

Firstly stepchange don't do a DRO, they refer to Money Wellness or CAB.

They would not do this unless you qualified

Answers to your questions

1. You would not be put forward for a DRO in the first place as you would not qualify

2. Rent is an essential payment, unsecured debts not. They are smart enough to work out what is what 

sourcrates

DRO`s are meant for those who are in debt, up to 50k, but have little disposable income with which to pay it.

Your monthly budget should include everything you spend money on, except your debts.

When that is all added up, and deducted from your income, you must be left with a figure of £75 or less in order to qualify for a DRO.

This is why its paramount to budget correctly, and to allow for price increases in the following 12 months during the moratorium period.

You might want to run a fully completed SOA past us and we can see what`s what.