Are we doing the right thing?

purplegirluk1

I was just thinking about our money situation and wondered if you guys think we are doing the right thing.

Both OH and I have student debts totalling £25,000

I have a £3,000 overdraft

OH has a very small overdraft

Neither of us are earning enough to have the loan repayments taken from our wages, I am being payed sick pay and OH has a low paid job.

My overdraft is interest free as it is a student account and they will start taking small amount back soon, I will be able to afford this as long as I am still being paid, if I am not then we will have to budget from OH's wages but it should only be around £500 a year.

We are saving up our money for a mortgage deposit, putting it into two ISA's each month.

Do you think that this is the best way of doing things? We have depts but as far as I can see they are either costing us anything or are far to large for us to pay off now.

CLAPTON

by student debts, presumably you mean with the student loan co so you only pay if your earnings are above 15,000 a year (1250 a month)? if so i would leave them alone as they only charge interest at the rate of inflation.


if the overdrafts are all interest free then again no point in paying them off as long as you are saving sufficient to repay once they start charging interest.

if you dont have enough to pay the overdraft off and they start charging interest use your saving to pay as much as possible.

otherwise save in the best a/c you can find and use your ISA allowance as its tax free