50k on credit cards all out of 0%

thisisthecount

Thankyou! 

fatbelly

If you can' t get 0% deals, can you BT to a low-interest card?

https://www.which.co.uk/money/credit-cards-and-loans/credit-cards/best-credit-card-deals/best-low-interest-credit-cards-aK63v2V1RvgN

thisisthecount

thanks, I'm hoping I can get as less a cards as I can though? I doubt anyone would give me a 20K limit anymore? 

TheSpectator

thisisthecount said:

thanks, I'm hoping I can get as less a cards as I can though? I doubt anyone would give me a 20K limit anymore? 

Who are the 6 cards you currently have with? Suspect you are going to look for any outside any banking groups you currently have and doubt you will get a £20k limit - that would take your exposure to £80k.

Grumpy_chap

thisisthecount said:

thanks, I'm hoping I can get as less a cards as I can though? I doubt anyone would give me a 20K limit anymore? 

You need to remember that any prospective lender will be looking to assess your proven income (which you state is in the range £60k - £80k), your current outstanding debt (£50k) plus your current available credit (which looks like another £70k or so based on the list of cards shared upthread).

A prospective lender does not know that you won't go out tomorrow and blitz the entire available credit on whatever.

thisisthecount said:

I attach all the cards I have in total, first column is the balances atm and right column is the total available.

MattMattMattUK

I agree with Grumpy on this, I think it is very unlikely anyone will grant you new credit cards with anything more than a token credit limit.

The elephant in the room still seems to be you do not know where £4-5k of your household income is going every month. You should be able to pay down your debts, but you are saying you cannot, something does not add up.

ManyWays

So the problem here is that to the people reading this thread, the numbers dont sound at all likely from our experience. Either you are taking more out of the business than it can afford, or you are spending a lot of money on non-essentials that could be redirected to paying off the card debts or you are buying things you need for the business with the money you are taking out, which means that your business and personal finances are very tangled up. 
If the business is actually going very well, then you may have options for business borrowing which will let the business repay you for the credit card debt you used to get it off the ground; you could talk to your accountant about this.
Otherwise I think it would help to talk to Business Debtline who are very good at helping people who are self-employed or who have small limited companies disentangle business debt from personal debt and they can advise on both aspects: https://www.businessdebtline.org/

Tucosalamanca

In theory, borrowing at a low rate and keeping funds in a director's account can be a good thing (business pays the director interest at a higher rate than director is borrowing at).
If you need the money back, taking from the directors loan account might be preferable to taking money as salary or dividends (because it's already your money and won't be subject to personal tax).
You say that a business plan is in place. What does the plan allow for and where is your accountant in all of this?

Grumpy_chap

Tucosalamanca said:

In theory, borrowing at a low rate and keeping funds in a director's account can be a good thing (business pays the director interest at a higher rate than director is borrowing at).

Except, the OP is currently borrowing at a high rate (typical CC 26% or thereabouts) and the business can only pay "market rate" for the money borrowed from the Director.  That "market rate" is likely to be lower than the CC rate.
An Accountant could advise.

There seems to be an issue here in that neither the Ltd Co. nor the OP have ready capital allowing the CCs to be cleared and the OP's household income is in the region of £6.5k to £7k per month (or higher if tax efficient drawings are in place) but that money is disappearing without trace and nothing remaining to allow the CC payments to be made.  The OP simultaneously suggests they are definitely drawing what they need from the Ltd Co., but also that business is tough.  There seems to be some denial somewhere.  The OP really does need to prepare a full SoA (Statement of Affairs) so that they understand their cashflows in the round.  It is possible that the OP is kidding themselves by saying they are drawing a good salary / income from the business but then recycling that back round into the business.

kimwp

I think you need to present actual numbers in an SOA to get advice that is going to help, as your definitions of low housing costs etc, clearly don't match the definition of the forumites.