Used credit in last 3 months

pieapple

Hello all, just looking for some opinions and experiences. I've been advised by stepchange to delay my DRO apllication for a couple of months as I used my credit cards and one catalogue in September for some small purchases (mainly groceries and some childrens clothes.) Just wondered if anyone had any experience of this and if they know of DROs being rejected due to credit being used 3 months prior to an application. The purchase for the childrens clothes was from the next directory. One of the items was delayed so i'm not being billed for it til the 28th October. I have still been making payments towards all my debts as im trying to keep them under the £20,000 limit.

Sorry for the waffle, just wanted opinions and experiences from others who may know more on this.

foxy-stoat

If its essentials then I wouldnt worry, if you just bought a 55inch curved tv then you may be on a loser.

If you have tried to reclaim your PPI, then do this now and keep the money!

pieapple

Lol defintely no tv's. Its all essentials apart from one payment to amazon for £59.99 which was a gift for my son.

pieapple

Do any debt advisors have some advice on this please?

DorisTrousers

I have always held the view that if credit HAD to be used and there was no choice, and as long as it was used sparingly and with good reason, e.g. food, then there is absolutely no problem. I very much doubt a creditor would want to run the risk of potential bad publicity on that by making an objection to the granting of the order.

That said, the Amazon purchase probably does count as a little frivolous, so if you want to be really safe then maybe a delay is the right way, but that is a decision for you.

How close are you to the limit by the way?

fatbelly

Unlikely to be a problem.

mwarby

One thing to think about is stopping debt repayments, if your going for dro/iva/bankruptcy.

It certainly doesn't hurt to get used to no credit, it makes sure you can afford to live when dro/iva/bankruptcy goes through and with any luck gets you a small contingency fund

pieapple

DorisTrousers wrote: »

I have always held the view that if credit HAD to be used and there was no choice, and as long as it was used sparingly and with good reason, e.g. food, then there is absolutely no problem. I very much doubt a creditor would want to run the risk of potential bad publicity on that by making an objection to the granting of the order.

That said, the Amazon purchase probably does count as a little frivolous, so if you want to be really safe then maybe a delay is the right way, but that is a decision for you.

How close are you to the limit by the way?

Im at about £19,400 at the moment so can't really delay it much longer. Maybe 8 weeks max if the items I have left to sell sell successfully. However the lady at stepchange did say it will take about 4-6 weeks to process so by then it would be nearly 3 months since the amazon purchase. My main concern is the delayed item from the next directory. It's only for £8 babygrows but has only just been added to my bill due to being out of stock when i ordered.

pieapple

mwarby wrote: »

One thing to think about is stopping debt repayments, if your going for dro/iva/bankruptcy.

It certainly doesn't hurt to get used to no credit, it makes sure you can afford to live when dro/iva/bankruptcy goes through and with any luck gets you a small contingency fund

Unfortunately I have to keep repayments up for as long as I can as i'm so close to the £20k limit.

alltaken

15k? 20k is the limit as of Oct 1st. You seemed to acknowledge this in your 1st post. Unless I'm missing something?

pieapple

Yes sorry I mean £19,400. I just know I'm about £600 under the limit at the moment. Been reading old threads all day so my mind just deducted the £600 from the old limit.