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Paying Off Debt
Tishypics
Posts: 1 Newbie
In January my wife and I will be in a position to pay off all our debt (30k+) minus our mortgage. This will mostly be paying off Credit Cards.
The aim being to be in a position, credit score and affordability wise, to downsize our property and apply for a new mortgage.
Is there a right or wrong way to do this?
ie should we cancel the 6 credit cards (3 each) we have, or keep a couple.
The aim being to be in a position, credit score and affordability wise, to downsize our property and apply for a new mortgage.
Is there a right or wrong way to do this?
ie should we cancel the 6 credit cards (3 each) we have, or keep a couple.
0
Comments
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Hi,
If your sole intention is to get a new mortgage then your credit file needs to be as squeaky clean as possible.
That will mean meeting the full outstanding balances on each account rather than negotiating settlement deals as would be the case otherwise.
Maybe keep one card each to keep your credit file rosy, pay it off monthly if possible.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
If you're keeping the 1 card each - set the Direct Debit to "clear full balance" for monthly spending, this reduces the temptation to let spends roll over and incur interest.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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