Which first, lose debt or buy family home?

hypno06

Uh oh, brainfreeze has discovered my life of deceit.....:rotfl:

nickelodeon

Hi,
Does your income include child benefit and tax credits? have a look at https://www.entitiledto.co.uk to make sure you are receiving the benefits you're entitled to.
I bought my flat when I still had debts but I just didn't want to wait any longer, I was living with my parents previously and they didn't charge me much rent so I could save quite a bit of my income for a deposit whilst still paying chunks off my debts. All I can say is buying a place is always a lot more expensive than you think. I thought I would be able to pay the mortgage and bills and my debts, but I really struggled and ended up getting a second job, I also ended up increasing my debts as I bought furniture on my credit card and paid for car insurance and Mot and other things on my credit card as they weren't budgeted for.
It may have been better for me to clear my debts and wait a few years before buying somewhere, but to be honest I don't regret the decision I made, I love having my own flat! It was a struggle for the first year and doing two jobs wasn't much fun, but it was worth it and now I can afford to pay for everything and am putting all my spare money towards my debts.
Anyway good luck with whatever you decide to do!

JaySee_2

nickelodeon wrote: »

Hi,
Does your income include child benefit and tax credits? have a look at https://www.entitiledto.co.uk to make sure you are receiving the benefits you're entitled to.

Hi Nikelodeon, thanks for the reply. We've applied for child benefits and tax credits, should hopefully start receiving them soon.



Thanks to everyone that has replied to my original post - I appreciate all of your comments & the general feedback I've gotten seems to sway towards 'dont buy yet!!'.. which to honest feels like the right thing to do.

It's good motivation to get the 'bad debt' sorted, just got to keep that motivation going!

southernscouser

When does your loan expire mate?

JaySee_2

December 2012, hopefully gone sooner though!

taxi73

Hi there..only just caught this one on here...I agree with everybody pay the debts off first as when you see a mortgage advisor you will find that they take into account any other financial committments so this will lower the amount you can borrow...a mortgage and debt together plus having to pay for household emergencies =disaster..
I myself want a larger house but will no0t be buying until I have cleared all my debt..

AliceBanned

JaySee wrote: »

Thanks for the reply! Is it not worth keeping a little cash available in case it's needed, like car repairs or insurance etc - or should I still just throw it all at the debt and if need be re-spend on the card? I'd hate spending on the card again, but I can see how that'd make more financial sense, interest wise.

I'm going to go over to whatsthecost.com, I need all the motivation I can get! I'll also get onto a spending diary.. though I might need to start some sort of incentive scheme to keep my wife updating it (joint account!). I've got a strong feeling that a reasonable percentage of it goes on takeaway food at weekends, guilty!

My experience of credit cards has been that if you save credit on them for emergencies or to use when running out of cash at the end of the month, they end up still being a part of your life rather than a shift in attitude really happening, which is what is needed to repay debts. Someone on this site gave me advice on this: Put the credit card in a plastic bag and put it in some water in the freezer. It may seem ridiculous but it worked for me. I wasn't ready to get rid of the card/close the account but I didn't want to rely on it either. My attitude has changed towards it; it is as though it doesn't exist but if I really needed some money in a real emergency, I have access to it but not such immediate access. It is really a psychological benefit to me, putting it there. I've also had help from people on this site by giving an SOA so that should start you off. I am also a first time buyer (not yet bought) and am repaying most of my debts, about £2,000 before I save to buy. Especially now the housing market is slowing down I don't feel the need to panic but have a longer term plan of say 1-2 years before I buy.

In_Search_Of_Me

Just to say welcome & agree with the others. Wait to buy! If ou're worried now wait till you OWN a house when the guttering needs fixing, something goes wrong & you are responsible for fixing it! Just not worth it. While I own my own flat I have considered selling it because of that (& guttering needs fixing...bye bye £200!!). I think in this country we get fixated by house ownership and its crazy when you just cannot afford it. Wait until the debts are gone and live stress free (or relatively!) in a house you love & know you can afford. Use the time now for learning how to manage your money stress free and dont forget if you do buy & cant pay they'll have it back anyway which is infinately a more stressful process than paying rent! Plus having just had a baby moving would be a nightmare (congratulations BTW!)...just relax and enjoy frugal family life! Big hugs & keep posting!