Credit Card Debt.

Lee_Wilson

Hi there, firstly I’m not the best with writing so bare with me...

For years I had poor credit history and after 5 years I got myself sorted, at the beginning of 2018 I got myself a credit card with a limit of £3900, anyways, I made some large mistakes and got into gambling (error) losing pretty much the full amount. I’ve paid the minimum every month and it’s been interest free for 12 month and for a further 3 month after this. Fortunately for me my Dad has offered to clear the balance and I can pay him back, am I better off clearing it in one or over 3 months, will it look bad clearing it all and just closing the account or am I better off leaving the card open. I’m absolutely useless with money, and my wife quite rightly has threatened to leave me, just want to know what the best thing to do is.

[Deleted User]

Clear it ASAP and only close it if you can’t control your spending

Lee_Wilson

Would it look go on my credit file if I just cleared it straight away?! My friend was saying it would look good because it looks like I’ve just used the 0% and cleared before the charges come.

I’m not proud of myself and feel lucky to have a helpful father.

[Deleted User]

It will show that you’ve cleared the balance on a promo.

Define look good?

If you mean the score or rating then ignore that advice as they aren’t real

Lee_Wilson

I had bad debt for years (no CCJ’s) but a lot of missed payments which will be off of nearing to coming off my report, I’ve never missed a payment on this card so I’m guessing whatever’s happened in my past will drop off still after 6 years and this card won’t show up as a negative on my report?! I’ve read the report is a load of rubbish but when I thought I’d sorted myself out I got into this debt again, which thankfully is getting cleared and I haven’t missed any payments. Sorry for seeming a bit dumb, just years of poor money management and rejection by mortgage companies.

[Deleted User]

Clear it in full.

If you can control your spending, then use the card for regular spending and clear in full.

If you can't control your spending, cut the card up and leave the account open.

If you don't trust yourself not to order a new card, close the account.

Lee_Wilson

What benefit do you get from keeping it open?!

[Deleted User]

It will at least show that someone trusts you enough to extend you credit, even if you don't trust yourself enough to use it.

Using it regularly and sensibly is the best thing to do, always clearing in full so you pay no interest.

Craig1981

i would close your account, as you said you sorted yourself after 5 years of hard work, but back to owing £3900 on a CC

would strongly urge you to self exclude form gambling sites and betting shops as well - can be done here:
https://www.gamstop.co.uk/

Lee_Wilson

Yeah I think that’s what I’ll be doing anyway. I don’t understand why keeping it open makes any sense.