Big decision to make am scared

hollinspaddington

my husband died at the end of last year. I have around £23k of debt which I need to deal with. I already have informal arrangements with 3 of my lenders (credit cards)

I have filled out the budget sheet with stepchange who have recommended a pause in payments or a dro. The recommended top solution was suspension of payments. I’m a bit scared a a dro. What are the pros and cons of a suspension of payments please? It’s so scary being on my own now and dealing with all this. I have a son whose mental health is broken by losing his father so I’m supporting him and need to get this right so I have space in my head for him. Thank you for reading

Ms_Chocaholic

I'm sorry to hear this. I didn't want to read and run but I'm sure someone knowledgeable will be along soon to help you, they're so helpful here I'm sure they'll be able to give you some advice x

fatbelly

If Stepchange say you are suited to DRO, then do a DRO. Stepchange don't do them so they would have to pass you on to someone else. What is the problem? It's a clean start.

littleredhen

sorry for what you are going through - might this article help https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-relief-orders/getting-a-debt-relief-order/how-to-get-a-debt-relief-order/

ManyWays

The recommended top solution was suspension of payments. 

Did they say why a DRO was not their top recommendation? Is anything significant likely to improve in the next year or two? Or get worse?

I agree with @fatbelly that if a DRO is possible, this is usually much your best option. Clean start. No payments. Once the DRO is set up, you are not monitored, very low key.

RAS

You've posted on the bankruptcy forum so you'll not get much response from people who've chosen other options.

The first thing I'd say is that in debt collection things don't move fast. OK, their computers are programmed to send texts, emails and schedule robo-calls but they really aren't looking at you. Block numbers, switch your email contact details before you stop paying. Everything important arrives by mail.

Try to relax. Read round the DFW forums when you can. If Stepchange has suggested non-payment, they may think either ill-health or write offs are an option, although both require time and energy.

Read up on the requirements for a DRO which clears all debts. And please come back with your SOA budget if you think you just miss the criteria. All to often people are living minimal lives because of debt and when they asked what they need to live replicate that rather than a budget that allows them to live.

You've got 6 months are so to decide what you want. Meantime if you end up with a fiver, please open a savings account and put it by.

sourcrates

I have moved your post to the debt free wannabe forum, which is a more appropriate place for it.

I don`t understand when people say they are scared of a particular debt solution, in your case a DRO.

What are you scared of exactly?

A DRO takes away all your money worries, and after the initial set up, requires no further input from yourself, something that would benefit both you and your son, given your circumstances.

Its nothing to worry about, we can answer any question about the process that you may be unsure of.

JadedAngel88

I did a dro end of last year. I thought it would be a long process but from start to end it was 23 days. My bank account was not blocked or frozen, I had no debt with them anyway. I even kept my £100 overdraft, it's for emergencies only so I never use it and never increased it. I didn't have any arrears in my priority bills. So mine was just credit card debts.

I think the only thing it could affect is if you're renting, depending on your tenancy agreement, some have bankruptcy clauses. So I guess a dro would count as it's insolvency. But other than checking that if you rent, it's easy and the peace of mind makes it better.