Credit Worthy - Mortgage Ready

PinkChampagne · 19 March 2014 at 7:21PM

Hi All,

Need some help as I am unable to find a thread that really helps with my query.

I plan to buy a property next year April and know that I need to get myself ready to do this so that I can be in the best possible position to buy. I have picked April as by this time a default will be removed from account due to it being 6 years.
At the moment I have the following debts/credits:

£3550 - Littlewoods, I have been reducing my credit limit every time I make a payment by £200 each other. I doubt very much I would have this clear by April 2015.

Monthly loan payments of £212 which has 16 months remaining.

Car loan - £336 pm which has about three years left on it.

Aqua Card - £1000 which will be cleared by the end of the year.

Barclaycard - £2500 plan to reduce this be the end of the year

Lloyds Bank - £750

JD Williams - £400 - will have this paid off by end of next month

My goal it clear as much as this as possible with a deposit which I have tucked away in a locked account which is due to mature January 2015.

I've read that reducing my credit limit is bad for me as it looks like I can not manage my debts but I no longer want to keep Littlewoods and JD Williams something this is costing me more than it should.

My hope is to move my aqua card to Lloyds credit card as it has the lowest apr and eventually get rid of my barclaycard.

Am I going in the wrong direction? Do you guys have any advice for me please as I really would like to buy my first home next year.

Thank you in advance

becky1984 · 19 March 2014 at 8:40PM

I'm not entirely sure on the whole "direction" thing although I can only assume that reducing your debt can only be a positive thing? Certainly when we were looking at increasing our mortgage and wondering whether to get a credit card to pay my mum back a small amount we borrowed, even a small sum on a credit card massively reduced what we were eligible to borrow on a mortgage.

Good luck with it all