We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Credit card debt problems - need help & advice!!!

desperadoV2
Posts: 106 Forumite
Dear all,
I posted this message on credit card board and I have been asked to post it here for more advice. so here I'm.
I have huge credit card debt problems and I'm losing sleep because of it. I need some advice. I never miss a minimum payment though. All minimum payments paid via direct debit.
I have following credit cards:
CC1 - £4,500 Balance (£5,500 credit limit) - Paying Interest £65
CC2 - £1,500 Balance (£2,500 credit limit) - Paying Interest £25
CC3 - £2,800 Balance (£2,900 credit limit) - 0% Interest until Jan 07
CC4 - £510 Balance (£8,000 credit limit) - Paying Interest £10
CC5 - £100 Balance (£6,500 credit limit) - Paying Interest £5
CC6 - £0.10 CR Balance (£8,100 credit limit)
CC7 - £40 CR Balance (£3,500 credit limit)
I need advise on the following:
1. I'm planning to apply for a mortgage (first-time buyer). I have got 5% deposit sorted out. Will my credit card balance affect my mortgage approval process?
2. I already have got 7 credit cards, can I apply for another credit card and transfer onto 0% balance for next 6 months? Will it affect my credit scoring and mortgage approval process?
3. Can I cancel the credit cards which I'm not using anymore? Will it help improve my credit scoring and eventually help me get a mortgage?
4. I have a total of £10,000 outstanding on credit cards BUT I have managed to raise £5,000 (raised by working overtime, sold few valuables and part-time job). Also managed to raise 5% deposit for mortgage. Should I pay off £5,000 in credit cards or should I put my 5% planned mortgage deposit amount and £5,000 into saving account for 6 months and pay one fixed monthly amount to credit cards and put off my mortgage plans for 6 months?
any advice? Please let me know.
many thanks.
I posted this message on credit card board and I have been asked to post it here for more advice. so here I'm.
I have huge credit card debt problems and I'm losing sleep because of it. I need some advice. I never miss a minimum payment though. All minimum payments paid via direct debit.
I have following credit cards:
CC1 - £4,500 Balance (£5,500 credit limit) - Paying Interest £65
CC2 - £1,500 Balance (£2,500 credit limit) - Paying Interest £25
CC3 - £2,800 Balance (£2,900 credit limit) - 0% Interest until Jan 07
CC4 - £510 Balance (£8,000 credit limit) - Paying Interest £10
CC5 - £100 Balance (£6,500 credit limit) - Paying Interest £5
CC6 - £0.10 CR Balance (£8,100 credit limit)
CC7 - £40 CR Balance (£3,500 credit limit)
I need advise on the following:
1. I'm planning to apply for a mortgage (first-time buyer). I have got 5% deposit sorted out. Will my credit card balance affect my mortgage approval process?
2. I already have got 7 credit cards, can I apply for another credit card and transfer onto 0% balance for next 6 months? Will it affect my credit scoring and mortgage approval process?
3. Can I cancel the credit cards which I'm not using anymore? Will it help improve my credit scoring and eventually help me get a mortgage?
4. I have a total of £10,000 outstanding on credit cards BUT I have managed to raise £5,000 (raised by working overtime, sold few valuables and part-time job). Also managed to raise 5% deposit for mortgage. Should I pay off £5,000 in credit cards or should I put my 5% planned mortgage deposit amount and £5,000 into saving account for 6 months and pay one fixed monthly amount to credit cards and put off my mortgage plans for 6 months?
any advice? Please let me know.
many thanks.
0
Comments
-
Clear as much credit card debt as possible, unless it's at 0%.
You can lose 4 of those cards with £700. Cancel the cards.
I'd recommend getting cc debt down to £5K as a first move and all on one credit card.
There's no point in saving if you have credit card debts at a higher rate of interest than the savings accounts.Happy chappy0 -
Hi there and welcome
WHATS THE APRS ON THESE?
CC1 - £4,500 Balance (£5,500 credit limit) - Paying Interest £65
CC2 - £1,500 Balance (£2,500 credit limit) - Paying Interest £25
CC3 - £2,800 Balance (£2,900 credit limit) - 0% Interest until Jan 07
CC4 - £510 Balance (£8,000 credit limit) - Paying Interest £10
CC5 - £100 Balance (£6,500 credit limit) - Paying Interest £5
CC6 - £0.10 CR Balance (£8,100 credit limit) ( CLOSE THIS ONE DOWN ITS ONLY 10p & this will improve your credit rating)
CC7 - £40 CR Balance (£3,500 credit limit) ( do you have the cash to close this one too, prioritise this)
I need advise on the following:
1. I'm planning to apply for a mortgage (first-time buyer). I have got 5% deposit sorted out. Will my credit card balance affect my mortgage approval process? ( YES, PROBABLY, when I went for my mortgage the lender totalled my debt, multiplied it by 3 and then deducted it from the amount of money they would lend me. In any case, no offence mate, but you cannot afford to buy a house, do you have savings for the solicitors fees, stamp duty, and all the other assosicated costs buyinga house entails?)
2. I already have got 7 credit cards, can I apply for another credit card and transfer onto 0% balance for next 6 months? Will it affect my credit scoring and mortgage approval process? ( you want to close those other two first, before doing any more shuffling) 3. Can I cancel the credit cards which I'm not using anymore? Will it help improve my credit scoring and eventually help me get a mortgage? ( YES)
4. I have a total of £10,000 outstanding on credit cards BUT I have managed to raise £5,000 (raised by working overtime, sold few valuables and part-time job). Also managed to raise 5% deposit for mortgage. Should I pay off £5,000 in credit cards ( YES) or should I put my 5% planned mortgage deposit amount and £5,000 into saving account for 6 months and pay one fixed monthly amount to credit cards and put off my mortgage plans for 6 months? Id put off the mortgage plan for a good while yet mate to be honest
Habve a look at southern scousers sticky first time posters, lets see if theres any more savingz we can find for you to get shot of this debt quicker:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Dear all,
Thanks to everyone for welcoming me to MSE and Debt free wannabe.
I'm one of the worst person in this whole world in money management. I earn very good money but I seems to be losing lots and lots of money on credit card Interest. So far I've lost £5000/- in the last 3 years on interests alone. Shame on me!!!
Here is one example of me being one of the laziest, stupid and ignorant person with finance.
6 months ago, I had a debt of £19,000/- but I had £7,000/- money in my current account but I was paying Interest on credit cards £200/- a month. I was paying £250/- a month on mobile phone bills and I was eating takeaway everyday. I have spent thousands of pounds on unnecassary Insurance in the last 6 years!!
I was not at all paying attention to my finances. I earn a handsome salary but at the same time I was very reckless.
In the last 6 years, I should have and I was capable of saving £40,000/- and have a nice car and a mortgage. But I'm on £10,000 debt with No car or Mortgage. I'm really stupid.
To add surprise to this, I'm 30 years old. I have wasted so much money in my life.
All I did in my life was lazy luxury! spend! spend! spend! and it is not useful spending. It was Wasteful spending!!!
I wish I could do things differently if I had 6 years of my life back BUT I CAN'T AND I don't want to dwell on my past.
The same dedication I showed towards spending all these years, I'm going to show towards saving.
After visiting MSE I can see light at the end of my debt tunnel. I want to be debt free in the next 6 months.
I WANT TO BE DEBT FREE!!!0 -
how much is your 5% deposit??
without knowing your full details its impossible to say whether it makes financial sense to even consider buying a property now (will you be buying with OH, what will the total mortgage/Council Tax/Water/Utility bills, insurances etc) be compared with your current situation.
usually owning a property works out more expensive than expected. As lynxpower has already mentioned, have you worked out the costs of buying not only all the fees but what about furniture and appliances for the new home, almost certain to need to spend something on repairing/decorating the place.
Without knowing this, it's impossible to say but it's probably best to use all your money to clear the debts, then start to save as much as possible for a deposit.... your debt payments are currently probably at least 250 per month which would then to available for saving.0 -
GOOD FOR YOU!!!
I can see that you are someone who can make things happen!!!
All the best:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Hello lynzpower and Clapton,
Honestly I don't know APRs on anyone of them. I just pay the interest and don't even know how they calculate the interest.
CC1 - £4,500 Balance (£5,500 credit limit) - Paying Interest £65
Morgan Stanley
CC2 - £1,500 Balance (£2,500 credit limit) - Paying Interest £25
BarclayCard
CC3 - £2,800 Balance (£2,900 credit limit) - 0% Interest until Jan 07
Capital One
CC4 - £510 Balance (£8,000 credit limit) - Paying Interest £10
HSBC Credit card
CC5 - £100 Balance (£6,500 credit limit) - Paying Interest £5
Amex
CC6 - £0.10 CR Balance (£8,100 credit limit) ( CLOSE THIS ONE DOWN ITS ONLY 10p & this will improve your credit rating)
Halifax One. This is +£0.10. The bank owes me money :-)
CC7 - £40 CR Balance (£3,500 credit limit) ( do you have the cash to close this one too, prioritise this)
Egg Credit card. This is +£40.00. The bank owes me money :-)
The two cards which are on credit, I don't know how to get the money without paying any charges on them
Total debt on Cards £10,000/-
I have £5,000/- cash in my current account (raised by selling some valuables, jewels, overtime etc).
I have £10,000/- cash in my current account which I've saved for mortgage.
I have started to work during evenings & weekends which could pay me £500/- a month.
I was thinking the following:
1. To put £15,000/- in a Instant access saving account until we find a house we like. Could be upto 6 months.
2. Move all the interest paying credit cards (Morgan, Barclay and HSBC) to new 0% interest card for 6 months.
3. Pay monthly £500/- towards these cards.
As soon as I find the house we like and after spending money towards my mortgage, I payoff remaining cash towards credit card.
That's why the question, Will a debt of £10,000/- affect my credit rating and my mortgage approval process.
I'm confused!!
My credit score on Experian is 900 out of 1000. So I was thinking of getting new 0% creditcard and be interest free on credit cards and use funds to earn some interest.
But again my worry is, if I try to apply for new 0% credit card and it got declined. It will affect my credit rating and thus affect my mortgage approval process.
HELP!!!0 -
Phone them up, close the cards, they send you a cheque:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Ok, lets see again
Hello lynzpower and Clapton,
Honestly I don't know APRs on anyone of them. I just pay the interest and don't even know how they calculate the interest. ( JUST PHONE THEM & ASK THEM, ENSURE YOU ASK FOR THE ANNUAL FUIGURE NOT THE EASIER TO SWALLOW MONTHLY FIGURE)
CC1 - £4,500 Balance (£5,500 credit limit) - Paying Interest £65
Morgan Stanley
CC2 - £1,500 Balance (£2,500 credit limit) - Paying Interest £25
BarclayCard
CC3 - £2,800 Balance (£2,900 credit limit) - 0% Interest until Jan 07
Capital One
CC4 - £510 Balance (£8,000 credit limit) - Paying Interest £10
HSBC Credit card
CC5 - £100 Balance (£6,500 credit limit) - Paying Interest £5
Amex
CC6 - £0.10 CR Balance (£8,100 credit limit) ( CLOSE THIS ONE DOWN ITS ONLY 10p & this will improve your credit rating)
Halifax One. This is +£0.10. The bank owes me money :-)
CC7 - £40 CR Balance (£3,500 credit limit) ( do you have the cash to close this one too, prioritise this)
Egg Credit card. This is +£40.00. The bank owes me money :-)
The two cards which are on credit, I don't know how to get the money without paying any charges on them ( AS ABOVE PHONE & CLOSE THEM THEY WILL SEND YOU A CHEQUE)
Total debt on Cards £10,000/-
I have £5,000/- cash in my current account (raised by selling some valuables, jewels, overtime etc).
I have £10,000/- cash in my current account which I've saved for mortgage.
I cannot take the mortgage fund to payoff my credit cards because my wife will kill me ( NICE)
She is very unhappy we are paying rent to payoff someone's mortgage and wants to buy a house. ( WELL, NO OFFENCE BUT WHAT IS SHE CONTRIBUTING DOES SHE HAVE 15K SET ASIDE)
I have started to work during evenings & weekends which could pay me £500/- a month. ( GOOD FOR YOU, BUT IT REALLY IS POINTLESS HAVING SAVINGS AT SAY 5% IF YOU ARE PAYING MORE THAN THAT IN APRS ON THE CREDIT CARDS)
I was thinking the following:
1. To put £15,000/- in a Instant access saving account until we find a house we like. Could be upto 6 months. ( WHATS THE POINT IN THIS?)
2. Move all the interest paying credit cards (Morgan, Barclay and HSBC) to new 0% interest card for 6 months. ( YEAH, ALWAYS A GOOD IDEA)
3. Pay monthly £500/- towards these cards. ( YEP, IF YOU CAN WHY NOT)
As soon as I find the house we like and after spending money towards my mortgage, I payoff remaining cash towards credit card. ( WRONG WAY ROUND THERE AS THE AMOUNT OF DEBT YOU HAVE WILL MEAN YOU WILL INEVITABLY END UP WITH A HIGHER INTEREST MORTGAGE, DO ASK ON THE MORTGAGE BOARD - HAVE YOU SEEN A BROKER YET)
That's why the question, Will a debt of £10,000/- affect my credit rating and my mortgage approval process. ( YES, AS THE LENDERS ARE GETTING RIGHTFULLY A BIT TIGHTER ON THE AMOUNT OF DEBT THAT YOU ARE ALLOWED)
I'm confused!!
I'm under pressure from wife to get mortgage and Car. ( RESIST, i SUGGEST YOU SHOW HER THIS LATER)
My credit score on Experian is 900 out of 1000. So I was thinking of getting new 0% creditcard and be interest free on credit cards and use funds to earn some interest.
But again my worry is, if I try to apply for new 0% credit card and it got declined. It will affect my credit rating and thus affect my mortgage approval process.
HELP!!!:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
dont forget your credit rating will improve by closing 2 of those cards in any case:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Hello lynzpower,
Thanks for the comments. I just called up and closed Amex card. Next up Halifax One.
Also going to close down BarclayCard and Morgan Stanley after paying them off.
This is one of the problem. Eventhough I have some money in current account, I don't feel parting them by paying off my credit card because most of them are interest charges. I have worked until 10pm for the last 6 months to save this money and I'm paying loads and loads of money in interest.
Credit cards are nightmare! It sucked me into debt and ruined my life.
Hope I get rid of it soon.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards