DRO approved but have credit card

Malarky21

Hi I have recently had an application for a DRO approved which is good news, I did have one credit card which was hardly used and had zero balance on it which was not included in the DRO. What should I do with this credit card? Get rid of it? Or could I still use if I was in a crisis or needed extra money urgently for a car repair for example?

Malarky21

Anyone have an idea as to what’s allowed re the above?

luvchocolate

During BR I had to pass mine to OR..like you account clear  
Fatbelly is our DRO expert..
Personally I wouldn't use it 

fatbelly

DROs are different to bankruptcy. There was no requirement to list it if it had zero balance and if there are no other debts listed to that lender, no reason for the company to cancel it.

You are not allowed to apply for credit (except with various caveats) during the 12 months but you are not applying.

If you need to use it it would be best if you pay it off in full at the end of the month. It is a grey area and we have discussed this in  the past. I'm in the camp that it's ok.

https://forums.moneysavingexpert.com/discussion/5410486/credit-use-in-dro

luvchocolate

Thanks Fatbelly for the clarification 

Malarky21

Thank you for your advice, must admit it is a bit of a conundrum, was going to cut it up but like I said in a previous message I may end up in a situation where I need urgent funds

normanna

How do you know you could pay your cc bill in full?  Can you honestly say you can or could be tempted to keep using it.  I would cut it up and try to put some funds aside each month for emergency.

luvchocolate

normanna said:

How do you know you could pay your cc bill in full?  Can you honestly say you can or could be tempted to keep using it.  I would cut it up and try to put some funds aside each month for emergency.

To be fare the OP came to check the illegality of using the card during a DRO this has been answered. 

normanna

luvchocolate said:

normanna said:

How do you know you could pay your cc bill in full?  Can you honestly say you can or could be tempted to keep using it.  I would cut it up and try to put some funds aside each month for emergency.

To be fare the OP came to check the illegality of using the card during a DRO this has been answered. 

I've offered advice to the OP as an alternative way to avoid getting into debt using a credit card.  He has to pay the money back spent on a cc and I've suggested an emergency fund instead. Don't tell me how I should respond or help others luvchoclate.