Advice wanted please

smallgod2000

Hi all

Need some advice for the best way forward for me know.

Faced my debts 2 years ago after ignoring letters and calls and sacrificed a lot including moving back in with family.

Currently owe Natwest, Cahoot and barclaycard with natwest being the biggest at 7k. I owe just over 8k in total

I entered into dialogue 2 years ago with the three above (plus 2 others but they have been paid off). I agreed monthly repayments with all three and that has been ongoing for nearly 2 years, in that time I’ve more than halved my overall debt. I also got a new job with better money which made it easier.

I've gone from having about 30 quid a month spare (seriously) to having a far more realistic amount spare but still tight

Natwest get £300 a month, Cahoot get £100 and barclaycard want a minimum of £20 but get around £70 - £80 (only owe barclaycard £400).

Although I’m paying off all three with no problems I don't have much spare cash at the end of the month and I want to look at getting my own place.

Is my best option to just keep paying everyone as I am and working through the debt, I figure out I will be fully free of the loan in 2 years, the other 2 debts will be gone in a year. (Once the small barclaycard is paid off I will put that towards paying more of cahoot)

I've been in contact with a mortgage broker and he has secured me 95% loan with a good high street bank (offer in principle) but while I have got the £300 a month going out it’s going to be hard if not impossible and I would like to get a bit extra on the mortgage to pay off the loan but house prices have stopped me doing that.

I can say although it was very hard at first, if you stick too it after a while you notice a difference, its only small but its still there. Its small things that to everyone else is just normal but for people in debt it’s a huge difference

Cheers

OberonSH

Personally I would wait until everything is paid off, that way you KNOW you have the money for the morgage - plus house prices may have dropped a little by then. Not to mention the saving up of the deposit. If you have no spare cash now, then you certainly won't be able to afford the £400 solicitors fees, £100 search fees etc.

southernscouser

Personally I would pay the debts off first!

Have you considered asking your creditors for full and final offers. Basically Barclaycard might accept £300 to fully wipe out the account. It could save you a bit of money!

Your doing really well mate. Don't get yourself into more crap before you can afford it! :beer: