Help with credit cards please

Neffi1uk

Not entirely sure this is the right place, apologies if it isn't.

A change of circumstances (marriage breakdown) has led to a drop in household income and the need to reassess my very poor credit management.

I have three cards on which I am currently making minimum repayments only.

MBNA. Balance 15809.47. Limit 19600.00. APR 20.9%. 0% balance transfer offer until 02/18

Tesco. Balance 2168.23. Limit 2500.00. APR 18.9%

Partnership. Balance 7278.79. Limit 9400.00. APR 16.9%

My credit file is fine in the sense that I've no missed payments etc but on doing a soft search of current 0% offers I'm not being matched, probably due to my lower income and my current high credit usage. There was one that gave me 90% chance of acceptance but I can't remember which one at the mo, maybe M&S?

To reduce my available credit a bit I've closed down a Next store credit account and I think that the next obvious step is to move the Tesco balance to MBNA on the 0% offer and close the Tesco card. Would that be the right thing to do?

Then I thought I'd try an application and move the Partnership balance to 0%. That's feels more likely than getting someone to take on the larger MBNA balance. Should I wait until the Tesco card is shown as closed?

Any other ideas I'm missing please? I will be budgeting to pay down as much of the debt as possible but am struggling to manage a lower income and it will take a bit of time to get on top of my new reduced circumstances *weep*

Thanks for your help.

[Deleted User]

I wouldn't close any more accounts. Your utilisation, as well as absolute debt, is very high already.

You could hope to get an offer from Tesco once you've cleared the balance. One further application would also be worth a try.

If you do get a further BT offer, you need to BT the highest rate debt, not the smallest or any other criteria - ie the MBNA balance.

However, you're also going to need to cut costs and throw cash at the highest rate debt. Visit the DFW boards for help.

Neffi1uk

Oh I'm definitely on the dealing with debt bandwagon and living within my reduced means. The plan is to pay down the debt as quickly as possible.

So, don't close Tesco but transfer balance to MBNA to reduce repayments for a little while? Minimum repayment to Tesco is £43.00 compared to £21.00 approx I'll be paying to MBNA by transferring the balance on a 0% (I think?)

And if I do I get a 0%, transfer as much of the most expensive balance even if it's not all of it?

[Deleted User]

Yes - always move the highest rate debt, or as much of it as you can.

Check your minimum payments on each card so you know what you will be paying. All will be at least 1% of balance plus fees and interest, but some can be higher (eg 2.25% of balance).