Consolidating cc debt

gfc_2

Hi....
I've just checked my credit report and woh its dropped over the last year. I think mainly due to accuring large amounts on cc's, about £10,000 ...no sympathy i know.
Anyway, i have around £5,000 in savings which was going towards a new mortgage with my partner (no way will that be possible now i guess for a while) but was wondering if it would be best to get a loan to pay most of the debt (throw away the cards) or use part of the savings? Would like to think my job's reasonably secure and was going to try and pay the loan off over a year if possible. What does everyone think? Would be gratefull for suggestions.
Final question, how long does it take for the credit report score to start going up if the cc debt's are being paid although i will have a loan?

TIA

Typhoon2000

Credit report scores dont mean anything, I doubt the balance on your credit card will make any differance to your mortgage applications. I'd put all the savings towards your CC now and BT it back to your bank account when you need the house deposit to be paid.

CLAPTON

your credit score won't have much impact on your mortgage application but your debts will. the mortggage company will take into acount how much you owe as this will affect the affordability of the mortgage.
without knowing the APRs of the CC debts its not really possible to give specific advice but using the saving to pay off the CC with the highest APRs makes sense and then concentrate on the remaining CC.
Also consider if there are any 0% BT deals or low life of balance CCs.

_Andy_

Typhoon2000 wrote: »

Credit report scores dont mean anything, I doubt the balance on your credit card will make any differance to your mortgage applications. I'd put all the savings towards your CC now and BT it back to your bank account when you need the house deposit to be paid.

It will have a huge difference as a balance that size is probably going to blow affordability out of the water.

Your second point isn't going to work as a lender isnt going to accept funds transferred from a credit card (i.e. debt) as a source of a deposit.

Typhoon2000

I mean BT the OPs bank account first then tranfer to the solicitor brom there. Theres no point having "£5000 in Saving" when your £10000 in debt paying a high interest rate. In reality the OP has no savings for a deposite and is net £5000 in debt. So I'd advice paying off as much of the CC as soon as you can to reduce interest and make any mortgage application more attractive.