Help available for Enfield residents struggling with debt

Over 500 people living in Enfield have applied for a DRO in the last ten years but many more could be eligible soon, reports Kinga Plata

Wallet (credit Towfiqu Barbhuiya via Unsplash)
credit Towfiqu Barbhuiya via Unsplash

Upcoming changes to Debt Relief Orders (DRO) can soon benefit Enfield residents in financial difficulty, according to a national charity.

A DRO is a way of dealing with debt and is designed for those with low incomes and few assets – and can give people who are eligible a fresh start by writing off unmanageable debts after one year.

Over 500 people living in Enfield have applied for a DRO in the last ten years, according to the new figures published by the Insolvency Service. 

However, up to 22% of the borough’s residents – nearly 75,000 – are in need of debt advice right now due to their poor financial situation.

This month’s changes to DROs include the abolition of the current £90 fee to apply. Further changes will come into force at the end of June when eligibility will be expanded to those with debts of up to £50,000, from the current level of £30,000, and those with a vehicle worth less than £4,000, up from the current limit of £2,000.

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National Debtline provides free, independent debt advice over the phone and online, and is able to register people who are eligible for a Debt Relief Order.

The Money Advice Trust, the charity that runs National Debtline, has welcomed the changes and predicts that many more individuals and families will soon be eligible for DRO while everybody feels the impact of the cost-of-living crisis. 

Steve Vaid, chief executive of Money Advice Trust, said: “Millions of people are feeling the impact of the cost-of-living crisis, and for many the effects have left deep financial scars.  With 22% of Enfield residents in need of debt advice now, our message to anyone worried about their finances is to seek free advice from National Debtline as soon as possible.

“No-one has to face their debts alone – our expert National Debtline advisers are here to help, and will work with you to make a plan to tackle your debts.

“And with welcome changes to Debt Relief Orders starting from this month, this option will now become available to more people who are unable to repay what they owe. Whether or not you are eligible for any particular debt solution, there is always something that National Debtline advisers can do to help – so I would urge anyone struggling to get in touch straight away.”

The charity-run service is urging anyone struggling to seek free debt advice by calling National Debtline on 0808 808 4000.

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