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Original poster

DRO. household expenses.? What's it included

5 replies

ExhaustedAndHormonal · 09/04/2018 20:32

So dp has about 13k of debt.. Accumulated from a car finance when with his ex. Which was a hitting rate interest, so got a loan to pay off and cover that as well as go back to his dream job.

Even though he now earns more. Things have spiralled and we're struggling. I'm on mat leave and potentially have to give up after if I can't get suitable hours.

His wage currently covers all utilities, his car costs and the loan. But with nothing left Iver.
Mine covers my car and the food shop.
. With literally nothing left a month between us and often shopping for food goes on credit.
We don't buy luxuries, smoke or drink. Can't remember the last time we brought clothes and shoes etc.

A dro says he would have to have less tha. £50 a month after household expenses. Does this include the fact he's paid the loan each month or the £50 does that mean without the loan costs.
In other words that there's no money to pay the loan?

OP posts:
Zioanna · 09/04/2018 20:37

The £50pcm is after essential living costs only. It doesn’t include any debt repayments. How much is the loan?

RedHelenB · 10/04/2018 07:18

It means that there is no money to pay the loan. If he is struggling with repayments has he contacted the loan company to see if they can lower them?

Snowman123 · 10/04/2018 08:03

Stop putting your shopping on credit cards. Cut them up, or you will never get off the hamster wheel.

Do a written budget. Your priorities are:

  1. Food
  2. Heating
  3. Rent/ Mortgage

Continue to prioritise your expenses after these 3 - debt is at the bottom of the list.

If you cannot meet the essentials, then you need to find a way to increase your income.

Snowman123 · 10/04/2018 08:08

Sorry just realised I didn't answer your question. Do you not have a breakdown of all the expenses that add up to the £50 being left over?

If the loan in not in the list of expenses, it seems that the £50 is what you have left to offer the loan company.

Are you claiming all tax credits that you are entitled to?

BarbaraofSevillle · 10/04/2018 09:10

You're probably best doing a comprehensive statement of affairs and posting on the moneysavingexpert forums

forums.moneysavingexpert.com/forumdisplay.php?f=159

They will help you go through your budget so it is sustainable and presented in the best light should your DP apply for a DRO - when struggling with debt many people do what you are doing and keeping paying the debts and either scrimping on food and other essentials or putting them on credit cards, when the 'best' thing to do (as in what will get you sorted quickest and most painless) will be to stop paying all debts, sort out a sustainable modest budget for all essentials and let the companies you owe money to fight over what is left.

Will utterly fuck your credit rating for at least 6 years, but the advantage is that you will be forced to learn to budget without using credit and come out the other side in a better position.

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