Tuesday 8th of September 2009
Debt relief orders (DROs) could clear the balances of Britons in as little as 12 months, a claim suggests.
Introduced in April, DROs are aimed at people with little disposable income once rent and bills have been paid, a sum of cash that is not enough to service household debt, lovemoney.com explains.
One benefit of DROs that could be attractive to Britons is that creditors will not be able to take action against borrowers to get their money back while the solution is in place.
"Your DRO will contain a list of creditors the order applies to. They’ll be told about the debt relief order and won’t be able to pursue you for money," the website notes.
It adds that while addressing money problems can be tough, the sooner they are faced up to - which could include undertaking a debt relief order - the quicker they can be sorted.
Recently speaking to the Northern Echo, Peter Sargent, president of insolvency trade body R3, said DROs are a "good idea" for some Britons, especially those with debt under £15,000.
By Kimberley Parsons
