Debt relief order and garentor loan

My figures
Rent £360 Rent:£17 agreed amount to arrears of £306
Water £39
Council tax £65
Gas/Electricity £103 £3 agreed amount to arrears of £1016
Telephone/mobile/internet £135 Suggested reduction.
TV licence £13
Repairs/maintenance £6
Childcare £543
Fines/CCJs/decrees £10
Life insurance/pensions £7
Hire purchase / logbook loan £117 £3 suggested amount to arrears of £93
Spares/servicing £29
Road tax £12
Insurance £119
Fuel/parking £174
Food/toiletries/cleaning £260 Reduced from £450
Medicine/prescriptions £9
Dentist/opticians £3 Reduced from £11.
Clothing/footwear £36
Newspaper/magazines
Sports/hobbies/entertainment £28 Reduced from £78.
Children's pocket money
Other (Overpayment) £30 ESA - £500 outstanding

No of adults 1
No of dependants 1

Your Income Amount
Take home pay £1,443
Child Benefit £87
Child Tax Credit £434




Total Income £1,964
Total Expenditure £2,098
Surplus (Deficit) (£-134)



Budget Comments
Please Note: Payments are not being
administered by StepChange Debt Charity.

fatbelly wrote: »

OK so you've got £1964 of income.

I don't think you've got £1914 of expenditure so I don't think this is a DRO. Potential problems in red



I make that 1832.50.

You've got more to pay to your debts if you can reduce your spending - fuel and childcare seem really high, with none of your childcare costs coming back through tax credits.

May be best posting a full soa on the dfw board. There's a calculator here

In regards to my fuel spend drive 200 miles a work so the spend cannot be reduced as there are no train stations near by to use public transport.


My childcare is the cheapest I can find as he attends 7.30am until 6pm so costs cannot be reduced here.


I do receive tax credits which my spend is accounted for. Total received per month is:

Child Tax Credit £434

John-K wrote: »

This is why the advice on here is never to be a guarantor. You have done what the lender knew you would do, and default, which is why they needed a guarantor to step in for you.

You did explain to him what it meant I hope?

Yes of course and he fully understands and can afford to pay for it but I had hoped there was a way around it.

macman wrote: »

What immediately jumped out there for me was £135 for phone/mobile/internet! That is absurdly high: you should be able to get a basic line rental and broadband deal for £30, mobile SIM only deal for £5 to £10. Instant saving of nearly £1,200pa. If you have an expensive smartphone, sell it and get a basic one for about £60.
With that level of spend, I'm guessing you have a very large Sky or VM package? You just can't afford this: Freeview, Freesat or Freesat from Sky will cost you nothing.
This should enable you to rapidly clear your rent and utility arrears: these are priority debts. At £3 per month utilities arrears payback, it will take you 30 years to clear the debt.
Are you getting the CT single person discount?
Do you have a water meter?
Insurance seems high: is this house and car, or just car?
Are you on the cheapest gas and electricity tariffs offered by your current supplier? They will block a switch, given your level of debt.

My charges phone and internet and tv are £135. £100 for sky which I am contracted to and cannot change until the end of my 18 months. I have contacted them to try but they have said there is nothing they can do. My mobile phone is £35 per month and contracted until Dec 18 when I plan to move to sim only but until then I wont be able to.


I am not on a water meter as there are 2 of us in a 2 bed house so if I have understood the advice of MSE correctly its best for me not to have a water meter.


I am getting council tax discount. The actual cost should be £100 per month.


The insurance is just car insurance. I drive a 14 year old petrol Peugeot and this is the cheapest quote I could find without having to pay a large upfront cost to change.


In regards to utilities I was forced to go on to smart meters and the rate is what it is and the debt deducted is controlled by them.


I truly believe that I have reduced costs everywhere I can and have not inflated them. I am not living a life style where I have money left over. I have a CCJ, people knocking on my door from provident and brighthouse I need this to end and DRO seems the best option for me. I am on medication for anxiety and depression whilst being a single mother working full time and studying at college twice a week in the evenings.