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  • FIRST POST
    • pliusas
    • By pliusas 9th Aug 18, 8:06 AM
    • 62Posts
    • 17Thanks
    pliusas
    something between DMP and DRO?
    • #1
    • 9th Aug 18, 8:06 AM
    something between DMP and DRO? 9th Aug 18 at 8:06 AM
    Asked payplan about DMP, but if I have no extra hours, I have only left 15 after expenses and they told me impossible to do DMP, because minimum amount should be 100. I can do sometimes extra 85, but not every single month So they offered go to DRO, but now I scare I will have more than 50 sometimes!!!

    I mean, if I have left 55-65 each month I am too rich for dro, but too poor for dmp? I am so confused about 4 weekly/monthly payments, not sure how to spread them correctly. And can I increase expenditure during DRO year or I have to agree before i Pay 90?
Page 1
    • pliusas
    • By pliusas 9th Aug 18, 8:09 AM
    • 62 Posts
    • 17 Thanks
    pliusas
    • #2
    • 9th Aug 18, 8:09 AM
    • #2
    • 9th Aug 18, 8:09 AM
    or just sometimes is OK to spend more on food (for example 35 for weekly shopping instead of agreed 25) and do not tell for anybody?
  • National Debtline
    • #3
    • 9th Aug 18, 11:17 AM
    • #3
    • 9th Aug 18, 11:17 AM
    Hi pliusas


    If you get paid 4 weekly it can make things a bit more confusing. For the purposes of working out what debt option you qualify for it's best to complete a statement of affairs (SOA) on a calendar monthly basis. Convert your 4 weekly figures by multiplying by 13 (to give a yearly amount) and then divide by 12 (to get a calendar monthly figure).


    Do you have to work extra hours at work? If you want the fresh start a DRO can give you by getting your debts written off, you might consider not working the extra hours until the DRO has finished. If your monthly surplus does rise over 50 the DRO could fail.


    It is also possible that when you earn more, you may spend more on certain outgoings. Changes to your circumstances should be declared. It's best to contact one of the free debt advice agencies to talk this through in more detail.


    Best wishes


    Susie
    @natdebtline
    We 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 Steps
    • pliusas
    • By pliusas 9th Aug 18, 12:33 PM
    • 62 Posts
    • 17 Thanks
    pliusas
    • #4
    • 9th Aug 18, 12:33 PM
    • #4
    • 9th Aug 18, 12:33 PM
    Susie,

    how about savings during DRO? For example I told I need around 100/year for my glasses, so around 8 per month. Should I withdraw this amount from bank and keep in some envelope "for glasses"? I told I need to put 20 "for rainy day envelope" and Payplan agreed it is reasonable, so after 3 months will be 60. Does it mean I cant keep it in my bank, because it will be over 50? Or they look at monthly income+bills, and if 10 left from Month1, they do not count these money in Month2?
    I think I get pay every 5 weeks, so I am a bit comfused.
    • fatbelly
    • By fatbelly 9th Aug 18, 7:32 PM
    • 12,805 Posts
    • 9,877 Thanks
    fatbelly
    • #5
    • 9th Aug 18, 7:32 PM
    • #5
    • 9th Aug 18, 7:32 PM
    You're allowed to have 1000 in 'assets', going into a DRO.

    Once you're in the allowances are more generous.

    So no problems with small savings.

    If your intermediary says you qualify, then run with that. You do need to sort out how often you are paid though. Five weeks would be unusual. Four weeks or calendar month are the most usual
    • pliusas
    • By pliusas 9th Aug 18, 10:47 PM
    • 62 Posts
    • 17 Thanks
    pliusas
    • #6
    • 9th Aug 18, 10:47 PM
    • #6
    • 9th Aug 18, 10:47 PM
    Good to know my 100 savings will be allowed as assets

    payment dates are strange, like 4,5 weeks but because only 2-3 days difference from month, so lets say its monthly.

    Anyway, I just get an email with reduced work fees ( I am self emp), seems wont be any surplus money at all.
    • sourcrates
    • By sourcrates 10th Aug 18, 3:56 PM
    • 15,513 Posts
    • 14,598 Thanks
    sourcrates
    • #7
    • 10th Aug 18, 3:56 PM
    • #7
    • 10th Aug 18, 3:56 PM
    pliusas,


    No one checks up on you once your DRO is approved.

    You will not normally have any more contact with either the intermediary or the insolvency service.

    It is up to you to tell them about any changes in circumstances, a few quid here and there extra can be absorbed into your budget, or saved as assets, spent on food etc for example, its only permanent major changes you would have to inform them of, remember you can have assets worth 1000.
    Last edited by sourcrates; 10-08-2018 at 3:58 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
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    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

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