Pro's and Cons

[cardiac arrest]

Re: Pro's and Cons

Well, after mulling this over for a while I've decided not to bother with a DRO.

My reasons are basically that one debt (the biggest) has already been confirmed by the creditor that they will not pursue anymore due to UE (I believe although they haven't admitted this). I realise they might change their mind, but I don't think they will. The other is probably 50/50 UE but they are not hassling me, accepting token payments. Both are off my CRA file. I also feel I could fight either or both still if need be. If I was being hassled it might be different, but I'm not so I'm not under any pressure.

Also, looking to the future, I am concerned about the impact of a DRO on my file for 6 more years if I want to change my rented property (which I might do)...and any other credit checks like car insurance, for example. . I was pleased to finally have a clear CRA file..and want to keep it that way. I think the Creditors also think differently about you when they know the CRA threat has gone..it kind of removes some of their ammunition.

Only time will tell if this is a good decision or not, but with everything seeming nice and quiet at the moment plus the knowledge that I have this forum to help me if things do liven up a bit, I'm content to leave things as they are.

Thank you all for your comments and advice.

[cardiac arrest]

Re: Pro's and Cons

Hi CA

I like MrsD's style on this. It would seem that you have a State pension looming up at the very least. If you have been receiving incapacity benefit on the run up to pension then there is an element of IC which you can claim. It is a calculation based on specific figure and is worth looking into.

However depending on your circumstances, why do you want credit at this time of life? We thought that Armageddon would strike us and Death would follow on a pale horse if we could not get any credit. Wow how wrong that is. We have trashed credit files rating of 1! Normally EEK! However a life without credit is really good. We are on pension now with a bit we saved for as well and that does not even bring us up to the minimum's laid down as the requirements to live a basic life. Hence the assessments have to be very realistic and may be non existent if pension income becomes your only source. What proved to be the problem is the amount of interest that has to be paid on credit, its not what you borrow, We are not without worry as we are till battling but life has become easier now we have told them to go do one.

Please be very careful with StepChange (CCCS), some friends whom we tried desperately to persuade to become active members here were stitched up by them for 14 years on an unsustainable amount per month for 14 years until they are 70. One creditor they failed to get them to freeze interest as well so the amount out of the pot they get means they will NEVER pay it off. So I would be very cautious.

regards
G

Thanks Garlok..You make a very valid point about credit..and when I think about what you have said about being debt free, I think why would I want to get into a loan or a hefty credit line again ? Living within your means and keeping away from the loan/credit sharks must be the way to go...I did think that my old banger would need replacing soon, but I should indeed do like Niddy said, save up for it first. I'm grateful you have reminded me that life without credit is great...although I do have a credit card with a small (£500) limit on it now..my choice...and I declined the Banks' offer to increase it to £1,250...been there, done that ! So I suppose I have learned my lesson. I take note of your comment about CCCS, forewarned is forearmed...

I don't have any Incapacities by the way...just the normal idiosyncrasies that's comes with getting older.....

[garlok]

Re: Pro's and Cons

Hi CA

I like MrsD's style on this. It would seem that you have a State pension looming up at the very least. If you have been receiving incapacity benefit on the run up to pension then there is an element of IC which you can claim. It is a calculation based on specific figure and is worth looking into.

However depending on your circumstances, why do you want credit at this time of life? We thought that Armageddon would strike us and Death would follow on a pale horse if we could not get any credit. Wow how wrong that is. We have trashed credit files rating of 1! Normally EEK! However a life without credit is really good. We are on pension now with a bit we saved for as well and that does not even bring us up to the minimum's laid down as the requirements to live a basic life. Hence the assessments have to be very realistic and may be non existent if pension income becomes your only source. What proved to be the problem is the amount of interest that has to be paid on credit, its not what you borrow, We are not without worry as we are till battling but life has become easier now we have told them to go do one.

Please be very careful with StepChange (CCCS), some friends whom we tried desperately to persuade to become active members here were stitched up by them for 14 years on an unsustainable amount per month for 14 years until they are 70. One creditor they failed to get them to freeze interest as well so the amount out of the pot they get means they will NEVER pay it off. So I would be very cautious.

regards
G

[cardiac arrest]

Re: Pro's and Cons

just a thought

how old are the defaults on your credit file, because they will fall off your credit file after 6 years regardless, unless you'v got a series of APs.

I don't think landlords do a full credit check but a DRO would probably definitely show as although it's not bankruptcy, it is a form. The plus is no worry, and that is a big plus, but in the end, you need to do what's best for you and yours, never mind stepchange (who full heartedly do what's best for the banks as that is where their funding comes from) or us, it's you and yours that are important here. I'm presuming that if you are due to get your pension, you'll be giving up work? so not idea how that will give you more income?

Thanks MrsD. It's worry about the unknown possibilities, and having been on a tight budget for a number of years I was definately looking forward to having a life when I get to OAP age, I've even started to have a few dreams about the things I will be able do that I can't now. I would be totally gutted if I stayed in the same or similar position as I am now for the rest of my life, and maybe that is me answering my own question. Whatever happens it can't be me staying as I am financially, scrimping along, going nowhere and doing nothing. So I guess there is only one answer, and if I can't get credit, I'll just have to do what Niddy suggested, save up..As for your question, I retired early a few years ago, but with costs going up and my works pension not, I suppose I'm like many other people, finding it harder to get by.

It's been really useful to share this and get others views, I don't know who else I could ask to be honest. I'll give it a few more days and let my mind settle a bit, then I'll decide for certain ..I know I need to act soon if it is the DRO route.

Thank you

Just as an addendum... I have worked for 38 years...so I've paid my fair wack in NI and tax and Pension contributions I think...

[MrsD]

Re: Pro's and Cons

just a thought

how old are the defaults on your credit file, because they will fall off your credit file after 6 years regardless, unless you'v got a series of APs.

I don't think landlords do a full credit check but a DRO would probably definitely show as although it's not bankruptcy, it is a form. The plus is no worry, and that is a big plus, but in the end, you need to do what's best for you and yours, never mind stepchange (who full heartedly do what's best for the banks as that is where their funding comes from) or us, it's you and yours that are important here. I'm presuming that if you are due to get your pension, you'll be giving up work? so not idea how that will give you more income?

[cardiac arrest]

Re: Pro's and Cons

^^^^ Does this suggest that you own your own house? If so then you wouldn't be entitled to a DRO unless the property is in negative equity. The maximum assets you can have is £300 (car excepted). I may have misinterpreted your statement Your profile page hasn't got any clues on this point.

Also, as a tenant I will likely move house at some point , like something easier to potter around in than my 1874 built house...that will require credit checks so that's another consideration. At some point soon I will have to make my mind up I know, as the clock is ticking against me.

[PlanB]

Re: Pro's and Cons

like something easier to potter around in than my 1874 built house....

^^^^ Does this suggest that you own your own house? If so then you wouldn't be entitled to a DRO unless the property is in negative equity. The maximum assets you can have is £300 (car excepted). I may have misinterpreted your statement Your profile page hasn't got any clues on this point.

[cardiac arrest]

Re: Pro's and Cons

Hmmm, wonder who funds this place? Barclays is a biggie (amongst others).

You wouldn't - DRO is not a BR


I agree a DRO might well be best for you, long term, based on the above but just make sure, if you do do it not to miss any creditors

Thanks Niddy... My other concern is the review which is held after the 12 month period has finished, before they finally write the debts off. What form this review takes, like for example will they ask if I expect any additional incomes in the near future...in which case I would have to say yes, and that might scupper the job. So, I need to know what this review entails...before I set off down this road. I have emailed stepchange to ask in a round about way.

[Never-In-Doubt]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90.

Hmmm, wonder who funds this place? Barclays is a biggie (amongst others).

My main concern is the impact of having a Bankruptcy on my credit file for 6 years

You wouldn't - DRO is not a BR

Pro's
-----

End of worry - agreed
Debt cleared - agreed
No more letters or aggro - agreed
No risk of a possible CCJ - agreed
Quicker resolution than SB - agreed

Con's
------
Black mark on CRA file for 6 years - agreed
Risk for future transactions where a credit check is required - agreed
Changing Bank Account or negotiating with Bank - agreed
Costs £90
Could wait for SB to kick in in 5 years (although that's not guaranteed.) - agreed

I agree a DRO might well be best for you, long term, based on the above but just make sure, if you do do it not to miss any creditors

[Never-In-Doubt]

Re: Pro's and Cons

As for future loans I guess at some point I might need a replacement car as mine is already 14 years old and will be lucky to last another 20 months, saving up first will not be an option, so that's one issue I have.

Instead of a DRO (which would affect any car anyway) save the pension monies for the new car - problem solved

[cardiac arrest]

Re: Pro's and Cons

A DRO is not Bankruptcy and the Stepchange website makes this clear.

If you've got a state pension on the horizon then I would think you've reached make-your-mind-up-time. You've probably worked hard all your life and paid your NI contributions so you deserve that pension more than your creditors

I'm of the same vintage as you (possibly a bit older) and it's abundantly clear that ageism is at work in the credit business. People of our age don't get loans, mortgages or credit cards easily, however rich we may be, because the banks fear we'll die before they get paid off. There's anecdotal evidence of Barclaycard reducing the credit limits on pensioners' accounts for this very reason. So you're probably worrying about being rejected for credit due to something negative on your CRA file when borrowing money in future may not be an option anyway.

Thanks Planb. I hadn't considered the ageism bit...As for future loans I guess at some point I might need a replacement car as mine is already 14 years old and will be lucky to last another 20 months, saving up first will not be an option, so that's one issue I have. Also, as a tenant I will likely move house at some point , like something easier to potter around in than my 1874 built house...that will require credit checks so that's another consideration. At some point soon I will have to make my mind up I know, as the clock is ticking against me.

It's impossible to say what will happen in the future with my existing creditors, but for sure if they find out more money is available, they'll want a slice..that is fairly certain , the success of a UE is a unknown as is how I will be treated with a DRO on my file. I got the bit about it being like a bankruptcy from another site I looked at (I've looked at a few so can't remember which one).

Yes I've worked for nearly 40 years, some of which I paid unneccessary state pension contributions since they reduced it to 30 years qualifying for a full state pension. I will also have another small pension from a previous employer to come at the same time as my OAP...so all together I will have a decent enough retirement income through my contributions over the years. I'd be gutted if the banks got their grubby hands on it, there would be no going back and no other options if that happened...so, is it a risk worth taking to do a DRO now...I'll never know if it was the right decision or not,but at least I eliminate the risks..........

[PlanB]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90. My main concern is the impact of having a Bankruptcy on my credit file for 6 years...how will that affect me. Do organisations run a mile when they see this on your file,

. . . There is also another factor...in 20 months I'll start to get my OAP..which will give me a bit of extra income. That could be taken to pay off my debts making me no better off..but if I'm going to apply for a DRO it has to be at least 12 months before any increase in income, which has to be declared and could affect my eligibility. So I need to decide sooner rather than later what I intend to do.

..whereas a DRO now would take all those unknowns away, and just leave another unknown of how would I be treated with a Bankruptcy on my CRA file

A DRO is not Bankruptcy and the Stepchange website makes this clear.

If you've got a state pension on the horizon then I would think you've reached make-your-mind-up-time. You've probably worked hard all your life and paid your NI contributions so you deserve that pension more than your creditors

I'm of the same vintage as you (possibly a bit older) and it's abundantly clear that ageism is at work in the credit business. People of our age don't get loans, mortgages or credit cards easily, however rich we may be, because the banks fear we'll die before they get paid off. There's anecdotal evidence of Barclaycard reducing the credit limits on pensioners' accounts for this very reason. So you're probably worrying about being rejected for credit due to something negative on your CRA file when borrowing money in future may not be an option anyway.

[cardiac arrest]

Re: Pro's and Cons

Have been on the Step Change website (formerly CCCS) and filled in all my info...and their 'advice' is a DRO...They apparently manage the process for you and it's free apart from the court fee of £90. My main concern is the impact of having a Bankruptcy on my credit file for 6 years...how will that affect me. Do organisations run a mile when they see this on your file, even though in reality it is sorting out your debts to give you a clear run, so to speak. I expect they think you are reckless and unreliable, making that judgement without actually enquiring about the circumstances..

Obviously once bitten by debt most people would make damn sure they never end up in that position again, and any credit they may request in the future would be of minimal and manageable proportions.

Looking at the Pro's and Con's....

Pro's
-----

End of worry
Debt cleared
No more letters or aggro
No risk of a possible CCJ
Quicker resolution than SB

Con's
------
Black mark on CRA file for 6 years
Risk for future transactions where a credit check is required
Changing Bank Account or negotiating with Bank
Costs £90
Could wait for SB to kick in in 5 years (although that's not guaranteed.)

There is also another factor...in 20 months I'll start to get my OAP..which will give me a bit of extra income. That could be taken to pay off my debts making me no better off..but if I'm going to apply for a DRO it has to be at least 12 months before any increase in income, which has to be declared and could affect my eligibility. So I need to decide sooner rather than later what I intend to do. I dare say some would suggest if I'm getting an increase in income then I 'should' be prepared to pay off some of my debts...

In the end, it's trying to guess the unknown isn't it...will the banks come for me at some point in the future, will they win against my UE by getting a sympathetic judge and I'll get a CCJ (which bars the DRO route). If that happens they'll look at my new income and help themselves to a nice chunk of it..and that'll be me stuffed for the rest of my days...whereas a DRO now would take all those unknowns away, and just leave another unknown of how would I be treated with a Bankruptcy on my CRA file..

I don't know...worry worry...

[SXGuy]

Re: Pro's and Cons

You make a good point Garlok, and they spurt the same rubbish about leaving the EU and having no trade agreements, when one of the main points regarding leaving the EU is you must first set up trade agreements in its place. As you say, they cherry pick the bits that suit them and ignore the rest.

[garlok]

Re: Pro's and Cons

Hi Cardiac. Unfortunately I don't have anything specific on the ECHR and ECJ material. I picked up the first inklings of perhaps something happening from all the chatter about rationalisation and equalisation of financial matters within the EU. I do follow it all a bit as despite being left of centre politically I am fervently anti EU having worked for the technical commission for a while during my career. This inequality and inequity over the Satute Barring of debts is yet another example of the Establishment cherry picking the bits that suit them in "EU Law" and ignoring the bits that do not suit them. In actual fact if you take a look at that heinous document called the Lisbon Treaty it tells that there is no such thing as "EU Law" AT ALL. Appendices 27 and 28 to the Protocols Articles specifically mention the UK and Poland as being exceptions to ANY agreements and clauses that they had signed up to. So all this claptrap about human rights EU Law, ECJ and ECHR we have just been sold is rubbish anyway.

Cambridge University Faculty of Law have actually published papers on the subject and the one I read was about Article 31. So interesting times I think and by the time corrupt cretins get around to doing anything I will long be burned in hell if not sooner sent to Auschwitz by Barclays Bank (who surprise surprise have a huge hole their finances)

regards
G