Starting my attempt to get debt free

Archie86

Hi,

Hoping to get some advice as I seek to start improving my finances after years of neglecting them!

I've got 3 credit cards; one is closed with a about £200 to pay off (£3000 limit, although it's closed my online account shows me as having available credit?), one maxed out and only making minimum payments (£5000) and another that has a couple of grand available. I've got a couple of high interest shopping accounts my wife opened in my name that need paid off asap.

Am I best to pay off the £200 and have that card closed completely to remove that £3000 from credit available or is it best to keep this open to show I'm not using it all? The other two cards are both pretty low interest, and certainly compared to the high interest stuff. I assume I am best to pay these off with the credit card and close both accounts? Or again, is it better to have them open but not being used?

Sorry if my questions are a bit "dumb" just trying to make a start to sort things out.

Thanks for any help or suggestions.

sourcrates

Hi,

Paying off the high interest accounts with the credit card is an option for you.

But what are you ultimately trying to achieve, you ask "what looks better" better to who ? A potential lender ?
Are you looking to borrow more money ?

Because if your not, then it makes no difference, if your aim is to be debt free, then close each account as its repaid.

If you want to use them again, don't close them.

NectarCollector

What are the interest rates on the cards with each amount you owe? are any in a promotional 0% ?

And how much are you able to pay off a month?

northerner999

Sourcrates cuts through the fog again - you talk about it being best to leave cards open, but why? So often I see people start the process by posting on here talking about improving their credit rating and being more attractive to lenders, I am never convinced they have actually had their lightbulb moment. I can tell you 100 per cent that I want done with credit cards once I have no debt to anyone, and only have them for emergencies and budgeted spending.

Your first thing should be to work out an SOA and post on here. People will be able to give best tips then on cutting back spending, increasing income and any shuffling of debt. As a rule of thumb, pay off anything you can afford starting with the highest interest debts first and work your way down.