Reduced limit. Now what?

Money_Man

izools wrote: »

It wasn't his choice. The limit was reduced by the card company as he was demonstrating signs of debt stress by riding the account close to its old limit for a long time.

Really? the opening post states he reduced the limit himself?

guesswho2000

izools wrote: »

It wasn't his choice. The limit was reduced by the card company as he was demonstrating signs of debt stress by riding the account close to its old limit for a long time.

Oh, I wasn't thinking that, I thought OP asked for the reduction, my mistake!

SCO

izools wrote: »

It wasn't his choice. The limit was reduced by the card company as he was demonstrating signs of debt stress by riding the account close to its old limit for a long time.

On the original post he states he reduced the limit after paying a sum off.

Not_so_Richy_Rich

I'm getting there now I think.
Just to clarify. My balance WAS £8500
I paid a chunk off. Balance is now £2600
At the same time I paid a chunk I reduced the limit.

I have never missed any payments. I do have £2k on a 6.8% LOB barclaycard. In total I have £4600 on CC's. I am making a massive effort to reduce the total balance and pay off fully. A 0% CC would help the final push.
I recently cleared (and closed) my HSBC card £7k on a £7.2k limit so that's gone now.

Should I stick with my current card (24% apr)
Any thoughts??

Money_Man

Not_so_Richy_Rich wrote: »

I'm getting there now I think.
Just to clarify. My balance WAS £8500
I paid a chunk off. Balance is now £2600
At the same time I paid a chunk I reduced the limit.

I have never missed any payments. I do have £2k on a 6.8% LOB barclaycard. In total I have £4600 on CC's. I am making a massive effort to reduce the total balance and pay off fully. A 0% CC would help the final push.
I recently cleared (and closed) my HSBC card £7k on a £7.2k limit so that's gone now.

Should I stick with my current card (24% apr)
Any thoughts??

So you made a big payment to a card and then reduced the line just above your balance? did anyone advise you to do that?

guesswho2000

Not_so_Richy_Rich wrote: »

Should I stick with my current card (24% apr)
Any thoughts??

Have you tried calling up your current card provider to reduce the APR?

If they won't, it wouldn't hurt to try and get a better card to BT to, one search won't matter if it helps you clear the debt quicker in the long run.

SCO

Not_so_Richy_Rich wrote: »

I'm getting there now I think.
Just to clarify. My balance WAS £8500
I paid a chunk off. Balance is now £2600
At the same time I paid a chunk I reduced the limit.

I have never missed any payments. I do have £2k on a 6.8% LOB barclaycard. In total I have £4600 on CC's. I am making a massive effort to reduce the total balance and pay off fully. A 0% CC would help the final push.
I recently cleared (and closed) my HSBC card £7k on a £7.2k limit so that's gone now.

Should I stick with my current card (24% apr)
Any thoughts??

If you have a decent credit history try Virgin, Creation or RBS these seem to be the more prime lenders that give credit easier than say nationwide or barclaycard and still have a decent BT offer. It cant hurt to try for one of the above especially paying 24%.

Not_so_Richy_Rich

Moneyman.. I took advice from the forum, but I guess I stand by MY mistake in reducing the balance. Having said that I really do appreciate the advice.
B/Card £2k 6.8% LOB. (I am managing this one) £3.3k limit
Virgin £2.6k @ 24% apr (wanting to change) £3k limit
HSBC £7k (PAID AND CLOSED!!) ££7.2k limit
Halifax (been dormant for a year 0 balance. Closed it as no offers)

All payments / closures have occured in the last 3wks.

guesswho2000

Not_so_Richy_Rich wrote: »

All payments / closures have occured in the last 3wks.

I'd wait a while for the CRAs to update before applying for new products.

The HSBC account will look good £7.2k limit and settled.

Utilisation %age a little on the high side, but based on what you've said you'd probably have a good chance of getting a new BT promo card.

izools

SCO wrote: »

On the original post he states he reduced the limit after paying a sum off.

Yep sorry my bad I read it as "The limit was reduced to" without reading he did it himself.

Sorry. It's late.

Money-Man - are you referring to me when you say I shouldn't advise people to reduce their limit when I know little about their circumstances?

I avoid doing this unless I've asked enough to be sure it is the right thing to do. As in the OP's case I never advised them to reduce their limit.

Looking at their post it will stand at 73% utilization once all the records have updated with the credit reference agencies.

This isn't great but it isn't dire either. Perhaps get it down to two thirds or under before applying elsewhere to be in with a better chance of approval