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Managing Available Credit

Hi all

Looking for a bit of advice.

We are planning to move in 4 years time once our youngest starts school therefore want to get our finances up to scratch ready to apply for mortgages.

I earn just over £22k yet I have £17,700 available credit split between 3 lenders:

£5000 Next - £300 balance paid in full each month
£6400 Barclaycard - £493 balance (0% BT and will be paid off July 2016)
£6300 Virgin - £759 balance (0% BT and will be paid off May 2016).

In addition to the above I am 2 months into a 48 month PCP which I pay £389 per month.

Wife is due to go back to work following mat leave in 3 weeks so from the New Year it will be save save save for a decent deposit. Wife earns £38k.

I honestly think I have too much available credit and don't want this to have a detrimental affect on us once we come to apply for mortgages.

Is there a best way to manage this?

Thanks

Comments

  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    Wait 4 years and worry about it then.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Only maintain credit lines you actually need and use.
  • hufc2002
    hufc2002 Posts: 329 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I do use all 3 but at no where near the limits.

    Is it worthwhile therefore reducing the limits?

    Cheers
  • bamgbost
    bamgbost Posts: 484 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    You could probably cut it down to 2 or even 1 card left.
    You don't seem to use a lot of it. But always handy in case of emergency!
    365 Day 1p challenge - £371.49 / 667.95
    Emergency Fund   £1000 / £1000 ( will enlarge once debts are cleared)
    DFW - £TBC
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