New to this... but all advice welcome

Vicki88_2

Hi all

I'm new to this so bear with me!

I would like to be as debt free as possible as I am thinking of applying for a mortgage soon with my fiance, i'll explain my situation.

I have just finished university and have a new job, only 16 hours but I have been offered more hours, just waiting for it to be set in stone. However I am worried about my finances.


I owe the following:

• £90 on credit card
• £79 on mail order
• £800 overdraft
• will have to start paying my student debt back next year, approx £18,000

I have 2 direct debits per month, £155 for car and £45 for phone.

Howerver, I did a credit report and was surprised to find my score was 964 in the excellent category, i'm hoping that's a good start.

Does anyone have any advice on how I could get this overdraft cleared up, and would this debt go against being offered a mortgage?

Thanks very much in advance

Vicki

pennypusher

Hi Vicki, post up a statement of affairs and people will be able to help you.

3Dogs

Hi vicki - you can do your Statement of Affairs (SOA) using http://www.makesenseofcards.com/soacalc.hml

Anarchist

Well, thats not much to worry about with the looks of it!

The only thing I will say, is that you won't get a mortgage at the moment without a decent deposit. 10-20%. And you can't raise this desposit from taking out loans etc, it has to be cash that you actually have.

Dave70

it's good your getting your head screwed on before it all gets out of hand. unless your partner has the money for a big deposit then you might have to follow some of the advice on here and wait until you have the hard cash for a deposit. getting loans sounds like it's a good idea but can always back fire as some people have found out

kingfisherblue

You only have to start paying back your student finance (if it was throguh the Student Loans Company) when you are earning £15,000 a year.

As others have said, post a Statement of Affairs. usually it is advised that you pay off the highest interest first, but looking at your debts, I would be inclined to get rid of the credit card and mail order debts. They're only small, and once they are out of your way, it will be much easier to concentrate on reducing your overdraft.

One thing that my daughter does when she gets paid is to divide her money into sections. She keeps her Direct Debit money in the bank, but the rest is withtdrawn. She puts her bus pass money into one envelope, weekly 'spends' into seperate envelopes for the weeks until the next payday (and once it is gone, it is gone), housekeeping for the month comes directly to me. If she has any exceptional expenses coming up, she allows for these as well, but the rest goes straight into her Credit Union account. It has helped her to budget and to save.

seanparkin

Wow, I should take advice from your daughter! Way too organised!

Vicki88_2

Hi all

thank you for your help so far. In terms of a deposit we actually have about £11,000 saved up and the house we want is £90,000 but as I was saying I'm really just waiting for my hours to be set in stone. The little thing that worries me is my partner doesn't know about the debts except for the student loans, which yes is payable to the student loans co. Any other advice is greatly appreciated, and thank you all so far for your help.

Vicki88_2

I have now done the SOA as advised, how can I get that posted for people to see or how is it accessed?

Many thanks so far

3Dogs

Hi again Vicki - when you completed your SOA there will be links on the site - choose the link for Forums/Messages and then copy and past it onto here

DVardysShadow

Vicki88 wrote: »

Hi all

thank you for your help so far. In terms of a deposit we actually have about £11,000 saved up and the house we want is £90,000 but as I was saying I'm really just waiting for my hours to be set in stone. The little thing that worries me is my partner doesn't know about the debts except for the student loans, which yes is payable to the student loans co. Any other advice is greatly appreciated, and thank you all so far for your help.

If you are looking for a lasting partnership, then you can't go hiding the debts, they will bite you in the bum sooner or later. I take it the £155 is for car HP rather than an employers lease scheme. You can't hide this nor the overdraft. Now did you contribute anything to the £11000? If you did, it is CRAZY to have savings while you have interest bearing debt. You are probably paying 20%APR on your car while getting 3% on your savings. If your car is £3000, you are paying 17% to have £3000 of savings [£510]. Think about it until you agree it is crazy. Or at least post back and say you cannot see it is crazy.