Clear Debt or Save for Deposit?

ognum

Just_Trying wrote: »

Also, I don't know anybody who has bought a house off their own back....I must just have very privilaged friends. I would love to hear from people who have done it themselves, just to know it is possible!!

Well I did I admit it was many years ago when we bought our first house but no one gave us a penny. We saved 25% of the cost before we bought. It was very very hard. We did not go out or have any holidays and lived in rented hovels!

sugarwalsh

Just trying - I think savng some each month for emergencies makes sense. Just make sure you save it by putting it somewhere like an internet account which you have chopped the card up for. Then if you do need it you can transfer it over rather than being tempted to purchase something on the spot with your 'spare' cash. We are saving for a wedding and have started tucking it away in an account where I have to transfer money over if I want anything, it really helps.

You don't have to sacrifice everything, life is for living afterall, just make some adjustments which you are comfortable with.

Megan

Just_Trying_4

Sorry Ognum, I meant to say anyone around my age / within the last few years. But still it must have been hard, good for you and I hope one day I can say the same (Maybe not 35%, I'd be retiring by the time I'd saved that much haha)

lazer

Just_Trying wrote: »

Also, I don't know anybody who has bought a house off their own back....I must just have very privilaged friends. I would love to hear from people who have done it themselves, just to know it is possible!!

Hi - I'm in the process of doing it by myself! The only help i've had is the last 6 months rent free livng enabling me to save that bit more - although i would ahve been buying the house anyway, just with less deposit.
As there is 2 of you's it should be easier for you, than it was for me!

Saying that my mum has told me she will give me £1k when the sale goes through, looks like i won't be sleeping on an airbed after all!

Its doable, if you want to do it enough.

My motivation to save came about 4 years ago, my parents were living in a rented house, and had been living in for 30 years, when the landlord came down and said he was selling, this was heartbreaking for all of us, my childhood home was being sold, and unfortunatley the house came with land so we couldn't even remotely afford it.

This made me realise I never want to settle in a rented house as you have no security even in a long term let, and encouraged me to stop wasting money and get seriously saving!

quintwins

i really think you need a good buffer to buy a house and start a family, i would pay your debts off asap leaving maybe £50 over to build up, and just stop asking them to reduce your credit limit incase you do need it in the meantime, but your not gonna get a quick fix you might have to save for years (but you will be able to save quicker once you have no debt) to get a deposit then you'll need a buffer incase your boiler gives up or your roof leaks or your heating system goes

i'm trying to do it on my own aswell however i'm 25 my hubbys 23 and we have 3 kids so we have alot of outgoings but were in for the longhaul and plan to self build

Just_Trying_4

Good for you guys, we should keep intouch and encourage one another!

Lazer, unfortunately my boyfriend earns quite a lot less than me which he feels eternally guilty for (I dont care, he works as many hours and studies, what more could I ask!) but of course it will still be a lot easier than if I was on my own, I really don't know how you have done it but good for you - and sorry to hear about your parents losing their house that must have been awful but I bet they are very proud of you!

quintwins I don't know how you to if with 3 kids! You guys are an inspiration I am so glad I posted on here now! Best of luck to you all.

atush

Always pay your debt off before saving for a deposit or other things you need or want.

There are 2 exceptions- a small emergency cash buffer in case anything breaks down and the buying of which would incur more debt. This would be from 100-400 quid i guess. Enough to cover things like your washing machine etc.

The other would be for cheap long term debt (such as mtg or student loans and a pension contribution where your employer matches your contribs (or better).

Lastly, there is a way to pay off your debt faster. Go to the Debt free board and file an SOA. the good folks there will help you reduce your spending and you can throw the money saved against your highest interest debt (I am going to assume the CC). Make a spending diary, and weite down every penny you spend. you will be amazed at how much you are wasting and just what you can save. Lastly find ways of earning more. From selling old stuff on ebay to getting a weekend job for a short period.

If you want to get to where you want to go, you are going to have to get used to the idea that you CAN do it if you try. But you have to deal with debt first.

atush

Just_Trying wrote: »

Also, I don't know anybody who has bought a house off their own back....I must just have very privilaged friends. I would love to hear from people who have done it themselves, just to know it is possible!!

Well now you do. Me, and lots of others here didn't have help to buy a house.

My mom did pay for the Rayburn for our current house as we had converted a barn and ran out of money (incl credit lol). We even got the carpets and some white goods supplied 68 months free credit. Haven't been in debt since we paid off that lot (apart from mtg and we overpay that now).

Since we bought/built our place, our parents have died and left us money. But we already had a house (2 by then) and not everyone has parents who own their own home so can leave something behind.

Just_Trying_4

Thanks again everyone - over the weekend I spoke to my partner and we have decided to take the plunge and move back into my mums in January - if we can do it for 2 years we will be debt free and around £16k in savings - that sounds more like it! A bit scary but 1 step back for 2 forward I think. Here's hoping!

ognum

Well done you for taking positive steps It is so much better to be in control of your destiny than just let things happen