Debt relief order is a crucial debt management solution that financial advisors offer you when you get caught in a debt dilemma. You are confused, and there seems to be no way out of your debt forest. What can help is knowing what questions to ask when you are offered the DRO solution.
Being in debt feels like being between a rock and a hard place. You live daily and show a brave face to everyone every morning, but something inside keeps gnawing at you.
You keep searching for a debt management solution until you come to the point that DRO seems a sensible plan of action. The debts are burning a hole in your mind, and that debt relief order feels like a needed pain reliever.
At this point, after having talked to your friends and done your online surfing of websites, you are ready to speak to a financial expert about DRO.
What Questions to Ask About DRO
Now that things are moving faster for you and you are eager to handle your debt, bring out your notebook. Here are some questions you need to phrase in front of the financial advisor about debt relief orders.
1- Do I qualify ? : You need to satisfy the terms and conditions of getting a Debt Relief Order so that you can qualify to get it. Once you are eligible, then a significant advantage is that a DRO freezes your debt repayments and interest for 12 months.
2- How much debt should I have to get it?: You can get a DRO only if you owe less than £30,000. You also need to be living in England, Northern Ireland or Wales. If you live in Northern Ireland, your debt amount needs to be less than £20,000.
3- Will my credit report be affected if I get into it?: If you are suffering from debt and even qualify for a DRO, there is some bad news on this front. Your DRO will appear on a public register. This action will hurt your credit report negatively.
4- If I live in Scotland, will I get it? : If you live in Scotland, you can’t get a DRO as it is unavailable. In Scotland, what is available to you is a Minimal Assets Process (MAP) which is similar to a DRO. However, the risks of MAP and its benefits are different.
5- What kind of debts can a Debt Relief Order handle so that I feel less stressed? : It is essential to know that most debts are covered in a DRO. Such debts include household utility bills and consumer debt like store cards and credit cards.
Are there any debts not covered by a DRO?
Some debts called ‘excluded debts’ are not included in a DRO. It includes criminal fines, arrears of TV licence, child maintenance, budgeting loans and debts taken out fraudulently like benefit overpayments.
If you have satisfactory answers to these DRO questions, then do take the plunge. Here’s to your debt-free future.
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