How much of a negative affect will my debt have?

marliepanda

I have some debts which I am actively paying off and will hopefully be finished with this year.

I have 350 on a credit card (1300 limit) this will be paid off next month.

470 on a student credit card
2000 student overdraft
1000 other overdraft on current account

I have never missed a cc payment, though I did go over my limit a few times last year, as I have with my overdrafts last year.

I will be paying off debts ASAP and will be saving like mad for a deposit for a house in the next 2 years.

How much of a negative affect will my debts have further down the line. Will the fact they are not defaulted mean my credit will be easier to rebuild once debt free?

19lottie82

Having a bit of debt, is actually a good thing! As long as you manage to pay it all off without defaulting on the payments. It shows that you can handle credit responsibly, and this will encourage lenders to give you a mortgage.

The amount of debt that you have isn't wild. Power down and get it paid off and it will benefit your mortgage applications when the time comes.

I'm not sure about the effect of goign over your overdraft limits will be. If it isn't by much, ahs been brief and has only happened a couple of times then I wouldn't worry too much about it, but perhaps someone else would like to confirm?