A bit of guidance

LKBlogg1980

Hi everyone,

Just after some suggestions really... I am finally earning a good wage and have the capability to start really hammering down on my debts, my question is do I throw everything at my debts until theyve gone and then start saving for the house deposit or do I do a 50/50 split etc??

Thanks in advance

L

Phelpsie001

It depends on the breakdown of your debt I'd say? If you have £10,000 on a 29.9% credit card, then pay that off!!

NeverAgain_2

Saving will give you a nice, warm feeling, but unless you are an investment genius, the interest on your debts will comfortably exceed the interest on what you save.

It follows you should concentrate on clearing your debts, particularly the higher interest ones.

dell33

Personally I would bury the debts first & then concentrate on Saving. Saving is great but Clearing the Debts gives a better buzz, that is just my personal opinion.

Best of luck.

tearose

If you are fortunate enough to have all, or even some of your debts on 0% then open a savings account with view to paying them off when the 0% period is up. That way you'll make some money on interest and will get the feel good savings feeling. If you have any interest charging debts then pay these off first. This is what I have done, I've got 18 months to get some decent savings built up whilst I pay the minimum payments on two 0% cards. I've worked out an amount that I can save per month, but any extra money that I get from surveys, ebays etc will be going to towards the debts so hopefully, when the time comes to pay them off, I won't have to use too much of my savings.