Opinions please

Leela_G

A little background, we currently have a flat which we are getting ready to put on the market, we where rather stupuid and took out a secured loan a few years ago.

Anyway our original plan was to sell our flat and pay off the mortgage and the secured loan and move into rented accomodation and save for a year or two for a deposit to enable us to buy again.

We also have some credit card debt and an unsecured loan.

However, we have now received some money take would be enough for a 10% deposit.

My query is should we use the money to put down a deposit or use this to pay off some of the credit card debt and still go into rented accomodation and save like we originally planned.

Hope this makes sense

getmore4less

How sure are you your spending problems are under control?

How much are you increasing/reducing your debt by each month now?

Do you have a proper budget covering at least a year in detail and contingency for likely expences over the next 5?

What are your plans for loss of income?


On selling do you want to move away from this place?
How big is the mortgage and loan and what rates, how much would rent be?

TrickyDicky

You're less likely to get a mortgage application approved if you have outstanding debts, and many lenders ask for these to be repaid before they release a mortgage anyway.

Best thing to do - pay off the debts, save for a new house.