Hi @dx100uk & @London1971

Thank you for taking the time to reply. I didn't send one because I was told by another member that it would probably be a waste of time.. do you think that it is not the case?

My Debts stand as follows at the moment:

Natwest OverDraft - £2,250

Littlewoods Online Credit Account - £1273.33

Next Buy Now Pay Later Account - £512.47

Paypal (They moved this to a debt collection agency called wescot) - £2113.38

Barclaycard Credit Card - £10,356.23

Amazon Credit Card - £499.53

MBNA - £4000

Total: £21,004.94

I genuinely can't afford to pay these off.

I am paying minimum payments (just about) where it's only hitting the interest rates.

I then have to move money around the accounts I do have just to be able to hit these payments.

This is how I have only just been scraping by the past few months.

I'm so stressed and just don't know what to do.

I feel like a DRO is the only way to go as I just need these debts wiped and I will never be able to pay them off on my own.

Please help x

Hey Everyone,

I came on here last year with my debt worries and was offered a wide variety of great advice. For personal reasons I did not get around to applying for any form of debt relief and have been living hand to mouth for the past few months. I have since decided that I am going to try and apply for a DOR but before I jump into it head first I had a couple of questions that I am hoping some of you may be able to help me with.

1. My Debt total currently stands at £21,004.94 I know that to meet the criteria for a DOR it needs to be £20k or under but a friend has offered to pay the £1004.94 for me to allow me to be in that threshold. Is this still ok?

2. I can not afford to live alone currently & although I recently split up with my partner we are very amicable and we agreed to continue to live together (we recently renewed a year lease on the house we rent) The bills all come out of a joint account and as he is now a room mate he pays half as do I from this joint account. How will this affect my DOR? It would be very messy to separate the account... but I don't know if the DOR will take into account his earnings??

3. I am renting do I need to let the letting agent know about my application for a DOR? I have lived here for 4 years and always paid rent on time.

4. The bills are in my name & my ex-boyfriends name. How will this affect my DOR?

5. I have a car on PCP how will this affect my DOR? On the research I have done I saw it said I can only have a car up to £1000. So am I right in thinking I will need to give my car back to the dealership?

6. I also have been helping care for a close friends family member and receive £66 a week carers allowance. I do not want to give up caring for him as he needs my help. How will the carers allowance be taken into account with the DOR?

I apologise if I seem a little clueless, this is all out of my area of expertise and I really don't have anyone to turn to. I would really appreciate any advice you can offer. I don't want to apply for the DOR until I know I have everything in place as I am petrified of it being rejected and not having any help with my debt.

Thank you in advance,

Kindest regards,

Halpert

Argh! I am so confused.

I feel really low today with all this pressure building up on me.

I really don't know what to do.

Like I said I have no safety net of family to fall on to for support so I want to put myself in the least vulnerable position as possible.

I don't want to end up homeless because of all of defaults and unable to get any credit to get me out of my hole.

x

@Andyorch I've still much to learn.

I am now thinking about if I can sell a lot of the things I no longer need or use like downgrade my iPhone to a basic one and sell my laptop and use my phone to bring in more money instead?

Also, I was thinking that maybe I could still find credit and move my balances around to be at the lowest rate and maybe see if I can do overtime at work to help bring the debt down as fast as possible. I would like to get a second job but no where is hiring at the moment.

I checked my credit score today and it currently stands at 356... Is that good? Bad? Average?

I think I work out the best way for me to cope but there seems to be no easy way out of this mess.

x

Ok I will phone them all up tomorrow and ask for these. Thank you as always @Andyorch x

Thanks @Andyorch So I should contact them all and get copies of my contract and take it from there? x

Argh! I am so confused. So you don't think that they will agree to help in anyway? Do you think even requesting a freeze on interest will be rejected?

I am so confused as to what to do. I thought I had worked out the best option but your lack of faith in this system worries me.

x

its a mix and match. The debts are all in my name but we have a joint account and some bills are joint. If I list all our incomings should I list his debt too?

I am filling out the form now so that I can send it to my creditors. My question is when filling it out do I put both mine and my boyfriends income and outgoings or just mine?

A lot is joint? A bit confused.

Thanks @Andyorch I will get onto that immediately x

Thanks guys,

Is there any helpful Budget forms you know of that will help me work out what I can and can't afford?

x

This is so sad, I loved Grumpy Cat x

@dx100uk That's made me think even more that the original idea of contacting the creditors myself and entering into a pro rata agreement must be my best move. I know I am in a bad financial state but I really want to reduce the restrictions for my future credit status.

So I now need to sit down work out my finances and how much spare money I have per month, then individually contact my creditors and ask them to freeze the interest and accept a lower monthly repayment.

The downsides to this are:

1. They could refuse to accept my offer (but I will only go back to the position I am in now).

2. It will affect my credit scoring (but not as bad or as long as a DRO or IVA would?)

3. The debt will not be written off but I'll just be allowed to repay it over a longer time scale and a more manageable rate.

The upsides are:

1. I will not have the risk of my tenancy ending or my car agreement being revoked.

2. I will be able to breathe financially and not have to worry all the time.

3. The payments I make will actually go to reducing the debt not just hitting the interest.

4. I will have a better chance or getting a mortgage in the future with this option rather than an DRO or IVA.

5. I can keep my bank account.

Is the above all correct?

19 minutes ago, London1971 said:

I don't see how it would affect your current tenancy , 

 

Do you have anyone, like parents who could guarantee any future tenancy?

 

Pers I'd ditch the car, I think it's penalty free after a certain point. Plenty of cheap reliable run arounds available for OIRO 5 or 600 quid.

 

 

 

 

I don't have any parents. Which is why my main concern will always be my tenancy as I am petrified of going homeless and having no one who cares for me to help.

If I simply send off the pro rata letter though it wouldn't affect my tenancy or car would it? x

It's a PCP agreement and I think that would rule me out of a DRO as it would take me over the £20k and I don't have any third party who'd be able to take on the debt for me.

If I sent the letters off with the pro rata agreement, I would still be able to keep the car wouldn't I??

I'm thinking that although a DRO and IVA would be more immediate for me, that sending the letters off first and seeing what the creditors say and agree too may be a better and more suitable move for me x

The only reason I don't want to enter a DRO unless absolutely necessary is because I was reading that when renting your home the tenancy agent can kick you out of your home for entering into a DRO or IVA? Also, I currently rent my car on a PCP and I could have that contract terminated too?!

If I enter into the informal negotiations with my creditors via the pro rata letter, am I correct in thinking that this wouldn't affect my renting status and the my hire car? 

What would I need to show them to provide income and outgoings proof? Bank Statements and Wage Slips?

x

@dx100uk So they can't enforce it? That's so strange.

Ok I will include it if I go for a DRO or IVA.

I am reading as much as possible on both DRO and IVA's and trying to make an informed decision as to whether or not this is the right thing for me. I am struggling so much financially but I hate the thought of not being able to pay back the creditors.

My next question is:

Can I still send off the pro rata debt letter asking my creditors to freeze my interest whilst I look into the DRO and IVA's?

Or do I need to just go straight into a DRO/IVA situation?

If they freeze my interest do I then continue to pay back the minimum payments?

Or am I able to negotiate lower repayments?

Also, do I contact them myself or is there an agency I can go through?

I feel like I am slowly understanding the options available to me, which has eased my mind a lot.

I can't thank you all enough for taking the time to read my posts and help me out.

I have no one to turn to and you all feel like my friends now x

I like the idea of this: 

https://www.nationaldebtline.org/EW/information/10 ways to clear your debt/Pages/Options-for-dealing-with-your-debt-informal-arrangement.aspx

From what I can see this would not list me on any insolvency list and as such wouldn't affect my chances of getting a mortgage or credit in the future?

What are your views on the above? x

Thanks @Andyorch x

Also, I keep hearing that my PP debt should be ignored?? Why is this? x

Thanks @Dx100uk

I don't think any of my debts go back as far as 2007 but should I contact my creditors and get the dates that the accounts opened?

Also, my boyfriend lives with me. Will his income affect my DRO eligibility?

Many Thanks x

Hey guys,

Thank you again for all the information. Just a side note though (not sure if it matters) the header to this topic says Scotland... but I am not from Scotland I am from Sussex, England x

Thanks guys, I really do appreciate all your advice. I will read the other forums and messages too.

Apologies if it seems like I just ask a million questions. I am not the fastest reader/learner so it has been amazing to be able to ask all the direct questions I have been worrying about for a while, but I will try my best to do some research of my own too.

Many Thanks x

Ok Thanks @Andyorch I will look into the DRO process further x

@dx100uk Thank you, I understood all of what you're saying there and for the first time, I think its all making sense.

If I ignore the letter, there is a chance it will go to court?

At court if they win and I don't pay they can go back to court and ask for bailiffs to come and collect the money.

However, there is a chance they won't even take it to court?

They may just drop the case all together?

Is this correct?

Also, should I write to them at all?

Should I contact them to say I won't be paying?

x

@Andyorch This is interesting. I do not own my home, I believe the less than £50 would be about right and I guess for 6 years I wouldn't really need or want credit. As long as I can afford my rent, bills and living expenses that would be enough.

After 6 years does your credit score go back to a beginners rating?

Will I need to continually provide information over the 6 years of incomings or out goings?

Is this settled via a court or online process?

Will my PCP (Hire) car be taken away from me?

x

@Andyorch Would you say in your opinion that a DRO would be less damaging to me than an IVA?

Lastly, am I able to keep a debit account and debit card with a DRO?

My boyfriend is currently living with me, would his incomings affect my DRO status?

@ericsbrother

1 hour ago, ericsbrother said:

So did you park there without displaying a blue badge?

was there the correct signage to indicate such a requirement?

I did park there without a blue badge.

Yes there was a floor sign for the bay.

I know that they're a private company and not the council who issued the charge and I was once told that because of this, the charge is more like an invoice asking you to pay the charge but without any legal backing? Is this true? Or are they entitled to charge me? 

What happens if I ignore there letters? Will I get a county court judgement? Or bailiffs demanding the money?

Sorry if I sound completely clueless, this is all new to me and I am trying to absorb all your amazing advice x