Once credit cards are clear, should I close accounts.

Smithson27866992

Hi,
Please be kind.  

I basically got myself and my husband in to thousands of pounds of debt.  I have had counselling and got to the root of my problems.  I cut up the credit cards and they are no longer maxed out, we have started to reduce the debts.  We currently have about 10 credit cards and we are at about 85% capacity.  We are hoping to move once our credit cards are cleared and our credit rating has improved.  My husband now is aware of all debts, so can keep an eye on it all.  As we clear a card, should we close the account or keep it open?  I am getting mixed advice, that says a lot of credit offered is good, but only if the cards have about 50% capacity on them.

cymruchris

If you’re working towards clearing the balances - and the cards are not available as you’ve cut them up - don’t close the accounts - keep them open. 

Ask your husband to get the cards replaced and put into his safekeeping (unless you fully trust yourself now it’s all in the open) - and keep the cards alive when they’ve reached a zero balance by putting your shopping or a tank of petrol on them every month and then paying them off in full. 

If you don’t use a card at all they might reduce your limits / and a healthy amount of ‘available credit’ whilst having a very very low amount of debt is a reasonable place to be. 

However if you lose control and start spending again - there’s not much hope! You’ve got to be determined to do it - set a plan and stick to it. (You sound like you’re on the right path) 

Jamesyb123

Don’t be too hard on yourself everyone makes mistakes just important to learn from them. It’s useful to keep some open as there may genuinely be an emergency. Just make sure the cards are in your husbands safe keeping for now until you’re both comfortable with the situation. Well done for facing up to it and sorting it out, I’m sure you’ll be fine 😊