What to do?? Help please!

metal_mickey30

Hello All,

I'm currently one of the many people stuck in the rental trap and in debt. I have 3 credit cards and a graduate loan to pay off, and yet I see most of my money going to my landlady each month.

My question is this - should I concentrate all of my money on paying off my debts (which at this rate would take me maybe 20 years), or should I try to make some savings to get the deposit for a property?

I am confused because if I managed to buy a property, surely I would be paying out less money each month than I am currently and then would be able to pay my debts off quicker?

I'm at the stage in my life where I want to be settling down and starting to think about starting my own family. What do I do??

metal_mickey30

bump........

LeeSouthEast

If you're heavily committed with debt, a deposit would be pointless as either no lender would lend (affordability), or they'd reduce the sum they'd lend to you by at least the amount of debt you're carrying.

Pay off your debt, and as quickly as you can. Why saddle yourself with even more for the sake of a roof over your head that ultimately you're still only renting (from the bank this time).

Horace

Mickey - how about posting your statement of affairs and then the folks on here will be better able to advise you - https://www.makesenseofcards.com/soacalc.html - follow the instructions on it to format it for MSE and copy and paste it here (removing any weblinks from the bottom).

doodledo_2

I personally would clear your debt and then save for your deposit. Any money sat in your savings would most likely be making less money than the interest your debt is accumalting.

As someone said above I would complete an honest SOA and post it here for some advice on how you can pay those debts back quicker.

I think having a plan of how you are going to pay them back and a date to aim for really helps.

Good luck

gfplux

hello metal_mickey90,
On the little information you have provided this is a no brainer.
Pay of your debts, then start saving and repair your credit rating, then you can think about buying.
Why not make out your SOA (link - http://www.makesenseofcards.com/soacalc.html ) Try not to guess at the figures, dig out the paperwork! However remember a partial completed one is better than none. It is in fact one of the most IMPORTANT things you will ever do to start on the road to recovery. If you want a lot of help on this forum, posting your SOA is the first and most important step. After it is done it is very easy to keep it up to date. In my opinion everyone should have an up to date SOA even if you have little or no debt. It is a great tool to manage your life with. If you post it on the forum answer the obvious questions before they are asked so you get immediate feedback, such as :-
If you have other Income explain what it is
Mortgage – interest only or not.
What is the age of any children.
Council tax over 10 or 12 months.
Electricity and gas any arrears.
Water rates meter yes or no.
Mobiles, how many and when are the contracts up for renewal.
If no contents insurance is it include with buildings insurance.
If your pets cost money, what are they.
House or flat value, has it been valued by an Estate Agent and when.
The more you can explain about your financial figures and circumstances the quicker you will get advise rather than questions.
Good Luck