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Close accounts or keep open?

Rachel24
Rachel24 Posts: 214 Forumite
Part of the Furniture Combo Breaker
in Debt-free wannabe
Hi,
Just wondering if someone can give me a bit of advice please 😊

I'm currently paying off my debts which consist of 2 credit cards, 2 overdrafts,next account and a loan. Currently making minimum payments to all of them but focusing on clearing one debt at a time. I've just about finished clearing one of my overdrafts which will be cleared by the end of the month. Then I'll be focusing on one of my credit cards which has the highest interest rate. Anyway sorry for rambling basically I'm wondering should I close each account as I go or will this affect my credit rating?

So once overdraft is cleared should I close it then same with my credit card once finished and so on or should I keep any open to show available credit?

Thanks
«1

Comments

  • GTR_King
    GTR_King Posts: 1,995 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Only keep open the accounts you need...

    Once each Debt has been cleared best to close the Account so you are not tempted to use it again
  • zippygeorgeandben
    zippygeorgeandben Posts: 1,277 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Debt-free and Proud!
    and think how much clearer some of your credit report will be with these satisfied debts :)
    Well done, keep at it!
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • bobcat2
    bobcat2 Posts: 72 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    I wouldn't close a current account if it doesn't cost you anything as you can use it at some point to switch to another current account and get a switching bonus, first direct or something like that.
    Maybe just cancel the overdraft so it can't be used for borrowing.
  • HairyHandofDartmoor
    HairyHandofDartmoor Posts: 13,960 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I would close the credit cards and accounts you don't use once the debts are paid. Otherwise they will always be there tempting you to run up fresh debt, unless you are very strong minded. You only need one current account and one credit card.
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = £58,766 😱 DEBT FREE 31 OCTOBER 2017 :T 🎉
    EMERGENCY FUND 1 = £50/£5,000. EMERGENCY FUND 2 = £10/£5,000.
    CHRISTMAS SAVINGS = £0/£500. SEF = £1,400/£12,000 PREMIUM BONDS ME = £350. PREMIUM BONDS DH = £300.
    HOLIDAY MONEY = £0 TIME LEFT TO PAY OFF MORTGAGE = 5 YEARS 1 MONTHS
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 10,000 Posts Debt-free and Proud!
    HairyHandofDartmoor wrote: »
    You only need one current account and one credit card.

    And maybe not even the credit card.
  • HairyHandofDartmoor
    HairyHandofDartmoor Posts: 13,960 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Bedsit_Bob wrote: »
    And maybe not even the credit card.

    True Bedsit Bob, I know I never want to have one again!
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = £58,766 😱 DEBT FREE 31 OCTOBER 2017 :T 🎉
    EMERGENCY FUND 1 = £50/£5,000. EMERGENCY FUND 2 = £10/£5,000.
    CHRISTMAS SAVINGS = £0/£500. SEF = £1,400/£12,000 PREMIUM BONDS ME = £350. PREMIUM BONDS DH = £300.
    HOLIDAY MONEY = £0 TIME LEFT TO PAY OFF MORTGAGE = 5 YEARS 1 MONTHS
  • Rachel24
    Rachel24 Posts: 214 Forumite
    Part of the Furniture Combo Breaker
    Thanks for all your replies. I'm not going to use any of them again. I had my lightbulb moment a while ago but I took on a part time job so I could pay off my debts.
    I've got a mortgage just now but we want to move in the next few years and want to make sure my credit will be good enough. Think I'll clear everything and just keep one credit card. Thanks again 😊
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 10,000 Posts Debt-free and Proud!
    Rachel24 wrote: »
    I'm not going to use any of them again.

    So why did you even consider keeping the accounts open :huh:
    Think I'll clear everything and just keep one credit card.

    Why keep a credit card, if you are not going to use it again :huh:
  • Rachel24
    Rachel24 Posts: 214 Forumite
    Part of the Furniture Combo Breaker
    I didn't know bedsit if it'll look worse for my credit closing them all?
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 10,000 Posts Debt-free and Proud!
    Rachel24 wrote: »
    I didn't know bedsit if it'll look worse for my credit closing them all?

    Why would having less available credit, look bad?
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