A DRO is a formal debt solution for people with low income, few assets and limited spare money each month. It usually lasts 12 months, and if your circumstances do not improve, the debts included are written off. A DRO stays on your credit file for six years from the date it is approved, which can make it difficult to access credit, open some accounts or pass credit checks during that time.

A DMP is an informal arrangement that allows you to make reduced payments towards your debts based on what you can afford. It does not usually write off debt, and creditors do not have to agree to it, but it can help you manage repayments. Although a DMP may not always appear as a separate entry on your credit file, missed payments, defaults or payment arrangements linked to it can affect your credit record and may make it more difficult to get credit in the future.

Bankruptcy: Bankruptcy is a formal legal process for people who cannot repay their debts. It can write off many debts, but it is a serious step and may affect your home, savings or other assets. Bankruptcy normally stays on your credit file for six years from the date it begins and can make it much harder to get credit, a mortgage, some bank accounts or other financial products during that period and sometimes afterwards.

If you are having problems repaying your loan with us, please talk to us before you enter into any of these debt solutions and do seek independent debt advise.