Is 5k Debt Each too much?

DisneyLisa

johannalf88 wrote: »

But you already have a 10K loan from Credit Cards? I wouldn't have thought that would make any difference?

I know that - I just think having the cards closed would make me feel better. I am not going to do it as I know its stupid and all debt will be paid off by end of next year when the 0% runs out

My debts are very manageable and our outgoings are low. I really just wanted to know if I would HAVE to pay off the 10k before I applied for the mortgage.

kingstreet

£10k of card debt is going to be viewed by most lenders as a £500 per month drain on affordability.

Unless the balance is a large percentage of your incomes (which it isn't in this case) your only issue will be affordability impact and not a policy issue on unsecured debt v income.

DisneyLisa

kingstreet wrote: »

£10k of card debt is going to be viewed by most lenders as a £500 per month drain on affordability.

Unless the balance is a large percentage of your incomes (which it isn't in this case) your only issue will be affordability impact and not a policy issue on unsecured debt v income.

Thank you. Do they take into consideration how much available you have to you? Our limits between me and my husband is 50k. We are in the process of closing some cards and reducing some limits but I dont want to reduce them all and then it looks like the lenders took them away

DandelionPatrol

DisneyLisa wrote: »

Thank you. Do they take into consideration how much available you have to you? Our limits between me and my husband is 50k. We are in the process of closing some cards and reducing some limits but I dont want to reduce them all and then it looks like the lenders took them away

I would suggest trimming down on the number of cards but levae the limits on the remainder where they are. Sometimes it looks bad to be using a high percentage of your available credit, so do not trim things too tightly around the credit you are using.