DRO Budgeting Guides?
CurseYourBiscuits
Posts: 1 Newbie
in IVA & DRO
Hello!
I'm looking for some help following a rather odd experience with Stepchange.
I have personal debt which up until a couple of years ago was manageable (until I had a pretty epic nervous breakdown which led to many poor decisions), and for the last year have been on a TPP which needs review. Stepchange are keen for me to make a quick decision and have suggested a DRO which I think sounds reasonable given that at the moment I am not earning or receiving any benefits (living entirely on the kindness of family), however I am working hard to improve my mental health and get back to work. The job I really want is around 16.5k a year and though I've drawn up a hypothetical budget that I think is reasonable and would still have me under the 50 quid extra rule, I'm concerned that it wouldn't meet DRO standards and I'd have to default (or whatever the word it) when earning, thus making it a stressful and redundant choice.
I've argued in the past with Stepchange about the essential qualities of things like therapy or a gym membership (can't afford both, even working!) but have struggled to get them to understand how important my mental health is in relation to overcoming debt.
Has anyone had experience of budgeting for a DRO and is there a guideline I can work from so I know whether a DRO would be right, or if it's best to try and find an alternative? I feel a bit rushed by Stepchange and I've looked around but everything seems woefully out of date!
Many thanks!
I'm looking for some help following a rather odd experience with Stepchange.
I have personal debt which up until a couple of years ago was manageable (until I had a pretty epic nervous breakdown which led to many poor decisions), and for the last year have been on a TPP which needs review. Stepchange are keen for me to make a quick decision and have suggested a DRO which I think sounds reasonable given that at the moment I am not earning or receiving any benefits (living entirely on the kindness of family), however I am working hard to improve my mental health and get back to work. The job I really want is around 16.5k a year and though I've drawn up a hypothetical budget that I think is reasonable and would still have me under the 50 quid extra rule, I'm concerned that it wouldn't meet DRO standards and I'd have to default (or whatever the word it) when earning, thus making it a stressful and redundant choice.
I've argued in the past with Stepchange about the essential qualities of things like therapy or a gym membership (can't afford both, even working!) but have struggled to get them to understand how important my mental health is in relation to overcoming debt.
Has anyone had experience of budgeting for a DRO and is there a guideline I can work from so I know whether a DRO would be right, or if it's best to try and find an alternative? I feel a bit rushed by Stepchange and I've looked around but everything seems woefully out of date!
Many thanks!
0
Comments
-
Hi there and welcome to MSE,
Unfortunately, it would be hard for any approved intermediary to offer you a guarantee in a situation like this. As there is no job offer on the table, it will be hard to even do a mock up budget plan. All we can say is that if your situation changes whilst you are in a DRO then you will need to inform the insolvency service and up date them on the changes. They will review your budget as necessary and make the final decision whether to allow the DRO to continue.
If you are unsure if this is the right option, then you could speak to one of the other free debt charities to have a fresh pair of eyes on your options. You can also post more details of your debts here and other posters may be able to help. Best of luck,
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
CurseYourBiscuits wrote: »I have personal debt which up until a couple of years ago was manageable (until I had a pretty epic nervous breakdown which led to many poor decisions), and for the last year have been on a TPP which needs review. Stepchange are keen for me to make a quick decision and have suggested a DRO which I think sounds reasonable given that at the moment I am not earning or receiving any benefits
I don't always agree with stepchange, and wouldn't have put someone with no income on a token payments plan.
But provided your debts are not insignificant a DRO does sound suitable.
I would like to see you getting some income. Have you tried to claim ESA? Even living with family you could then contribute to your keep, pay travelling costs, have a mobile phone and buy clothing - all acceptable expenditure items.0 -
CurseYourBiscuits wrote: »Hello!
I'm looking for some help following a rather odd experience with Stepchange.
I have personal debt which up until a couple of years ago was manageable (until I had a pretty epic nervous breakdown which led to many poor decisions), and for the last year have been on a TPP which needs review. Stepchange are keen for me to make a quick decision and have suggested a DRO which I think sounds reasonable given that at the moment I am not earning or receiving any benefits (living entirely on the kindness of family), however I am working hard to improve my mental health and get back to work. The job I really want is around 16.5k a year and though I've drawn up a hypothetical budget that I think is reasonable and would still have me under the 50 quid extra rule, I'm concerned that it wouldn't meet DRO standards and I'd have to default (or whatever the word it) when earning, thus making it a stressful and redundant choice.
I've argued in the past with Stepchange about the essential qualities of things like therapy or a gym membership (can't afford both, even working!) but have struggled to get them to understand how important my mental health is in relation to overcoming debt.
Has anyone had experience of budgeting for a DRO and is there a guideline I can work from so I know whether a DRO would be right, or if it's best to try and find an alternative? I feel a bit rushed by Stepchange and I've looked around but everything seems woefully out of date!
Many thanks!
There is guide published every year, it goes up slightly every year, for example £10.50 week for pets ect ect
It's hard to get hold of the actual list of maximum allowance and all the catogaries but it is online if you look
Perhaps somebody can post it here?Nothing has been fixed since 2008, it was just pushed into the future0 -
The industry standard since April 2017 is the Standard Financial Statement and stepchange should not be using their own figures though I don't know whether or not they are.
As for the SFS, there are guideline figures for: communications and leisure; food and housekeeping; personal costs. These are calculated on the basis of: number of adults; number of kids under 16; number 16-18.
The figures are guarded quite tightly but if I posted them you would struggle to interpret them as what is allocated to each category is probably not what you think!
There is a lot of flexibility and the answer to 'Do I qualify?' is always 'ask your intermediary'.0 -
The industry standard since April 2017 is the Standard Financial Statement and stepchange should not be using their own figures though I don't know whether or not they are.
As for the SFS, there are guideline figures for: communications and leisure; food and housekeeping; personal costs. These are calculated on the basis of: number of adults; number of kids under 16; number 16-18.
The figures are guarded quite tightly but if I posted them you would struggle to interpret them as what is allocated to each category is probably not what you think!
There is a lot of flexibility and the answer to 'Do I qualify?' is always 'ask your intermediary'.
Could you please post it here fatbelly, the actual list of max allowable expenses for each thing.
The list of things is very helpful, because some people leave out hobbies and some things are easy to forgetNothing has been fixed since 2008, it was just pushed into the future0 -
Could you please post it here fatbelly, the actual list of max allowable expenses for each thing.
The list of things is very helpful, because some people leave out hobbies and some things are easy to forget
The allowed expenses are not itemised, they are bundled amounts to give an overall picture of what you spend.
For example Housekeeping/rent/phone etc.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards