Best way to reduce credit card debt ?

Denver925

Hi
my first post - so i hope someone can help please :-)

I have 5 credit cards with total debt of some £22000. :-(

I have missed payments on several of them over the last 6 months - though all now up to date - but credit rating effected as i was refused a credit card application recently. (trying for a 0% card to transfer balance to).

I have used the cards to make cash witdrawals. (attracting higher int rate).

I know the error of my ways and now wish to put my house in order !! lol

I will shortly come into about £16000 cash and will use this to reduce my debt.

1. It seems obvious to clear the balances on the cards with highest rates.
This will leave me one or two cards with balances on.

If I just reduce the balance on this outstanding card(s) - will they not leave the cash withdrawal balance still there and so i will continue to pay higher rate - and if so -is it sensible for me to reduce balance to zero and then balance transfer the necessary amount back onto the card(s) ?????

2. Wishing to rebuild a good credit rating - is it desirable to pay off the cards i can completely - and close the accounts, or reduce the balances to say £500 and continue to make monthly payments ??????????????
(or doesnt it make any difference).

I am serious about putting this situation behind me - so any good advice will be gratefully received.

thank you in anticipation :-)

Denver (uk)

Typhoon2000

I would pay off the highest cards and close the account, aim for just 1 or 2 remaining cards and pay them off as quickly as you can. Once paid off, try to clear all new balances in full. This should put you in good stead.

debtdestroyer007

yeah def pay the ones, s with larger balances anf high interest first..... 6k def would be more mangeable......

i could do with £16k...... any change , i am only too happpy to receive it....lol
:rotfl: