What is a Debt Relief Order (DRO)?

A Debt Relief Order (DRO) is a type of personal insolvency; a free alternative to a bankruptcy or IVA. The credit reference agencies receive DRO information from the Insolvency Service.

If you can’t pay your bills, and you meet the criteria, you can speak to a debt advisor to apply for a DRO. A DRO lasts for 12 months and you won’t have to pay what you owe. However, it will affect your credit score, so make sure it’s the right choice for you.

It’ll be removed from your report after six years. There are restrictions in a DRO period, and you won’t be able to borrow more than £500. But you can always take steps to start growing your score again – start building positive habits now.