In this guide
Mis-sold Overdrafts
Mis-sold Mortgages
Mis-sold Credit | Store Cards
Mis-sold PCP Car Loans
Mis-sold Fraud & Scam Advice
Mis-sold Pensions & Investments
Hidden | Undisclosed Commissions
Mis-sold Pay Day Loans
Debt Relief Orders (DRO) Explained
Latest Updates
By David Turner
How you can use a Debt Relief Order to support you when you’re struggling to pay essential bills and debts.
Published: 12/02/2025 – 11:59 | Updated: 12/02/2025 – 16:10
What is a Debt Relief Order (DRO)?
A Debt Relief Order is an option for individuals who are struggling to pay bills, essentials, and debts. It offers relief by freezing payments and eventually writing off debts if specific criteria are met.
Key Features of a DRO
- No Monthly Payments: No payments are required during the DRO year.
- Legal Protection: Creditors cannot pursue debts, take court action, or send bailiffs.
- Debt Write-Off: Debts included in the DRO are wiped out after 12 months.
- Credit Impact: DROs harm credit scores for 6 years but can offer financial stability.
Eligibility Criteria
You must meet all the following:
- Total debts under £50,000.
- No ownership of a house or mortgage.
- Assets valued below £2,000 (cars worth less than £4,000 allowed).
- Less than £75 monthly spare income after bills and expenses.
- No DRO in the last 6 years.
Note: Some debts (e.g., student loans, court fines) cannot be included.
During the DRO Year
- No creditor harassment or payments are required.
- Major life changes (e.g., pay rise, inheritance) must be reported as they could cancel the DRO.
- At the end of the year, debts are written off with no further checks.
Who Benefits from a DRO?
- People with low income or primarily benefits-based income.
- Those with long-term financial struggles, such as pensioners, carers, or those with health conditions.
How to Apply
- Contact Citizens Advice or National Debtline.
- A debt adviser assesses eligibility, gathers details, and submits the application.
- Once submitted, approvals are fast—typically within 2 working days.
A DRO can be life-changing for those in serious financial hardship, but it requires careful consideration and professional guidance.
What is a Debt Relief Order (DRO)?
A Debt Relief Order is an option for individuals who are struggling to pay bills, essentials, and debts. It offers relief by freezing payments and eventually writing off debts if specific criteria are met.
Key Features of a DRO
- No Monthly Payments: No payments are required during the DRO year.
- Legal Protection: Creditors cannot pursue debts, take court action, or send bailiffs.
- Debt Write-Off: Debts included in the DRO are wiped out after 12 months.
- Credit Impact: DROs harm credit scores for 6 years but can offer financial stability.
Eligibility Criteria
You must meet all the following:
- Total debts under £50,000.
- No ownership of a house or mortgage.
- Assets valued below £2,000 (cars worth less than £4,000 allowed).
- Less than £75 monthly spare income after bills and expenses.
- No DRO in the last 6 years.
Note: Some debts (e.g., student loans, court fines) cannot be included.
During the DRO Year
- No creditor harassment or payments are required.
- Major life changes (e.g., pay rise, inheritance) must be reported as they could cancel the DRO.
- At the end of the year, debts are written off with no further checks.
Who Benefits from a DRO?
- People with low income or primarily benefits-based income.
- Those with long-term financial struggles, such as pensioners, carers, or those with health conditions.
How to Apply
- Contact Citizens Advice or National Debtline.
- A debt adviser assesses eligibility, gathers details, and submits the application.
- Once submitted, approvals are fast—typically within 2 working days.
A DRO can be life-changing for those in serious financial hardship, but it requires careful consideration and professional guidance.
Latest Mis-sold Finance Guy Overdraft News
The latest mis-sold overdraft advice...
If you have been lent an overdraft you cannot hope to repay, never asked for, or face excessive fees then you may have a claim against your lender.
Mis-sold CAR PCP Loans
Did you drive away with more than you could afford? If you were sold PCP finance and it had hidden commission affecting the choice of loan you might be entitled to a claim.
Mis-sold Store cards?
Repayments on many store cards can be too high to manage, often leading people deeper into debt!
Unsustainable Credit Card Debt?
High costs, unsuitable terms, or long-term financial strain?
Mis-sold An Excessive Pay Day Loan?
Long-term Pay Day Loan interest issues?
This guide will help you make an affordability complaint.
Pay Day Loan Distress?
Faced with unreasonable debt and unable to make headway?
This guide will help you make an affordability complaint.
Latest Mis-sold Finance Guy Overdraft News
The latest mis-sold overdraft advice...
Have you been lent an overdraft you cannot hope to repay or never asked for, then you may have a claim?
Mis-sold CAR PCP Loans
Did you drive away with more than you could afford? If you were sold PCP finance and it had hidden commission you might be able to claim.
Mis-sold Store cards?
Repayments on many store cards can be too high to manage?
Unsustainable Credit Card Debt?
High costs, unsuitable terms, or long-term financial strain?
Mis-sold An Excessive Pay Day Loan?
Long-term Pay Day Loan interest issues?
This guide will help you make an affordability complaint.
Pay Day Loan Distress?
Faced with unreasonable debt?
This guide will help you make an affordability complaint.
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How much interest are you paying?
Please remember there may also have been fees added to the finance too.
There are three less common debt solutions to consider. Full & Final Settlements are ideal if you’ve been on a Debt Management Plan (DMP) or unable to make payments for some time and now have access to a lump sum to negotiate settlements. Write-off debts are usually only an option in exceptional circumstances, as creditors rarely agree to this. Administration Orders, once more common, are now extremely rare, with only 16 issued in England and Wales in September 2016.
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