How to keep debt without losing interest...

nashersc

Ok, appreciate your help with this one guysm its slightly complicated, its a sort of stoozing question. I have the following credit card debt:

Lender0% expiry Credit Debt credit limit % max
First Direct Jan-15 £ 8,661 £ 10,000 87%
Santander Jan-14 £ 3,107 £ 3,700 84%
Tesco Feb-14 £ 2,822 £ 3,100 91%
Halifax Feb-14 £ 4,508 £ 5,000 90%
Total debt vs available £ 19,098 £ 21,800 88%

I have the 19k in a savings account earning 3% with santander 123, but come jan I need to either pay off some of this debt or transfer to another 0%. The problem is my experian credit report is flagging "poor" at 655 due mainly to how much of the unsecured debt I am utilizing. I'd ideally like to keep the debt and money, as even with transfer fees, the interest I earn on the £19 k far outweighs.

Any ideas?

[Deleted User]

There comes a point when you will have too much debt and or available credit in relation to your income. When that point comes,` you will no longer be accepted for a new deal.

Your score is irrelevant, so all you can do is apply and see what happens. If successful, you'll then need to manage your available limits carefully.

nashersc

Deleted_User wrote: »

There comes a point when you will have too much debt and or available credit in relation to your income. When that point comes,` you will no longer be accepted for a new deal.

Your score is irrelevant, so all you can do is apply and see what happens. If successful, you'll then need to manage your available limits carefully.

Thanks for that. Any idea what a good level of loan to available credit is?

[Deleted User]

The rough guidelines are often quoted as keeping limits to <50 of income, and debts <50% of limits. In my opinion, the limits to salary ratio is probably more important, but all lenders will vary.

You're obviously pushing the debts to limit ratio hard, which is going to generally count against you.

You may be running out of road right now, but at least you have the option to repay at least some of the debt and then potentially open up a new line of credit.

Cycrow

And there is always the chance of been giving another balance transfer offer on your existing card after you clear it

Serendipitious

In my experience whenever I have paid one CC off, they have raised the limit on the same card.