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50% Reduction Idea.

edited 1 June at 2:28PM in Credit Cards
6 replies 213 views
DandytfDandytf Forumite
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edited 1 June at 2:28PM in Credit Cards
Staring a new idea to reduce Balances of my credit cards.
As I'm not planning on snowballing until 2021, what I've decided to try reducing Balances to 50% utilisation.
This is instead of using  apr or amount owed.
Also it's possible 1 or two cards are recently hitting 50% utilisation.
Is this an acceptable idea, until I begin to free up more income late 20/21.
Thanks

sc dmp 2012 13k Dec 2019 11140 paid 80% approx.-Next Update Early Jan 2021
Mid 2018 Help2save 50 uk pounds per month-New Rules 2020
Mid 2019/20-Virgin Money e-saver reward 18 -T.b.c.-Closed reverting to e-saver 14.

Replies

  • SuperAllyBSuperAllyB Forumite
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    Any reduction in debt can only be a good thing however you do it, but snowballing the highest APR debt will cost you the least in the long run.
  • jonesMUFCforeverjonesMUFCforever Forumite
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    I would really start snow balling now - why wait - pay the most you can afford towards the highest charging card and minimum on rest for now.
    Any chance you qualify for any new cards to put some of it on 0%?
  • DandytfDandytf Forumite
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    Thanks all reply's
    can't free up any more repayment cash, using 50% balances as achievable starting point.
    I'll re check balances again, though later this week.
    upto 3 are what I call larger balances which would take years to clear by snowballing, not seeing much progress being made anytime soon, if I attempt 50% balances 1st, then I'll view some progress.
    sc dmp 2012 13k Dec 2019 11140 paid 80% approx.-Next Update Early Jan 2021
    Mid 2018 Help2save 50 uk pounds per month-New Rules 2020
    Mid 2019/20-Virgin Money e-saver reward 18 -T.b.c.-Closed reverting to e-saver 14.
  • jonesMUFCforeverjonesMUFCforever Forumite
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    I was not asking for higher payments now - just that you use what you have to repay the highest charging card first - then the next one down etc.
  • edited 1 June at 7:37PM
    DandytfDandytf Forumite
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    edited 1 June at 7:37PM
    @jonesMUFCforever
    I understand, worked well previously, though at much faster rate with more income.
    + hopefully <50% balances help to avoid any further persistent debt rules.
    Also not leaving minimum re payment on some cards.
    sc dmp 2012 13k Dec 2019 11140 paid 80% approx.-Next Update Early Jan 2021
    Mid 2018 Help2save 50 uk pounds per month-New Rules 2020
    Mid 2019/20-Virgin Money e-saver reward 18 -T.b.c.-Closed reverting to e-saver 14.
  • DandytfDandytf Forumite
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    Your score has improved because the number of credit accounts where you are using over half of your limit has dropped. Lenders pay attention to the amount of credit you use - keeping your usage low will demonstrate responsible use of credit, and improve your credit score.

    Could prove valid path.

    sc dmp 2012 13k Dec 2019 11140 paid 80% approx.-Next Update Early Jan 2021
    Mid 2018 Help2save 50 uk pounds per month-New Rules 2020
    Mid 2019/20-Virgin Money e-saver reward 18 -T.b.c.-Closed reverting to e-saver 14.
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