First Time Buyer with about 8k debt

ripboyce

Hi Experts,

Would i be better off paying my existing debts off or consolidating these with my first mortgage, which will probably be a fixed.

I can afford upward of £100k and am thinking of purchasing around the £92k mark, using the rest to pay off debt and buying essentials.

I really need to find out what my best option would be, i'm swayed to consolidation as i'm paying off about £450 pound per month (even though my min would be massivley less) and could get a mortgage and a house for a bit more than this.

Any suggestions or experiance would be very appreciated. Thanks

brannyrhino_2

i'm from the pay it all off brigade as soon as possible. Why have eight grand of debt lining the banks/loan co pockets.

Consolidation is not the answer it only means you pay back even more interest than before.

Your just throwing money away.

Switch your debts to interest free credit cards and pay them off asap.

Finally cut up all your cards and be happy.

ripboyce

cheers brannyrhino for that, for some reason o% credit cards did not come into thinking.

So i'll be able to use 0% balance transfers on wiping out existing loans, interesting.

Mines a cahoot flexi loan, is there any particular credit jargon that i need to keep an eye out for, such as needing a card that can transfer money to bank account then onto the loan, and what is a SBT card??

Fanx for taking the time out to post a response, well appreciated!!

brannyrhino_2

SBT is a Super Balance Transfer Card
see link below

http://www.moneyforums.co.uk/moneyforumstopic290.html


http://www.moneyforums.co.uk/post-116.html

This operation needs nerves of steel and 100% attention not to come unstuck.

There is also the risk that 0% cards dry up and your left with a large loan on credit card rates.

ripboyce

sounds like quite allot of effort, but with some rather wicked rewards like money saved. Once again cheers for your input.