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Unfortunately it appears that your debt level is too low to enter a formal solution, it is important to be aware that a formal solution may have a negative impact on your credit score and it would not be adviseable to enter such a solution given your debt level. Formal debt solutions, such as bankruptcy or an individual voluntary arrangement (IVA), can remain on your credit file for several years and may be visible to lenders when you apply for credit in the future. While a low debt level may not necessarily disqualify you from obtaining credit, it may be more difficult to secure loans or credit cards with competitive interest rates if you have a history of formal debt solutions on your credit file. It is important to consider this when making a decision about how to manage your debts. You may want to seek advice from a financial professional or a debt charity, such as Step Change or the Citizens Advice Bureau, to explore your options.

If you have applied for debt help and have been advised that your debt level is too low to enter a formal solution, you may want to consider a debt relief order (DRO) DROs are a formal debt solution that are designed for people with low levels of debt, few assets, and low levels of disposable income. To be eligible for a DRO, you must owe less than £20,000, have less than £1,000 in assets (excluding your home), and have less than £50 per month in disposable income. If you meet these criteria, you can apply for a DRO through an approved intermediary, such as Step Change or your local Citizens Advice Bureau. They will be able to help you with the application process and provide you with further advice and support.

If you are looking for advice on budgeting, credit, or debt help solutions, we recommend checking out our weekly blogs. These blogs offer helpful tips and guidance on a range of topics related to managing your finances and getting out of debt. From budgeting hacks and money-saving tips, to information on different debt solution options and how to improve your credit score, our blogs are a great resource for anyone looking to get on top of their finances. We update our blog regularly with new content, so be sure to check back often to stay up to date and find the information you need.