What should i do???

kada1980

Got year left in current job (leaving the forces) My wife and i will hopefully be looking to buy house in about 18 months. I realise that in our current situation we have little chance of saving enough for a deposit and feel the best we can do is try to reduce our debts. Does this sound sensible? Even if we can't afford to buy we are prepared to rent untill we can.

My current debt is,

Hsbc loan £14500 over 60 months @9.9% paying £304.37
have 54 months remaining.

HFC account £1500 around 19%
capitial one £600 around 15%

We have a couple of assets that could be put to use of reducing the debt currently have 3 cars and only really need the one, a reasonable estimate for the 2 of them could get us 8k. This will also lead to savings of mot tax insurance etc...

Well thats the current situation, ideally would like it to be a lot better in a years time, any advice would be a great help.

Cheers

Karl

philb120

If I was you I would sell the 2 cars and use the money to pay off the credit cards and part of the loan. I would pay off the rest of the loan using a 0% credit card balance transfer. Just my opinion though, I am sure that others will be along shortly with other and probably better advice. Good luck

bank_of_slate

I agree with pburnage,

If you clear the debts before you start looking for a house/mortgage when you leave the forces you'll be more likely to get a better rate which will be better in the long run!

You may even find that you can get some money together for a 5% deposit by the time you're ready to buy!

Good luck mate & keep posting, you'll find loads of help and support on here!

...Linda xx

Angela_D_3

My advice is don't even consider buying a house for another 12 months. check out https://www.housepricecrash.co.uk
Prices are dropping all the time and next year you might be able to afford more house for your money.