Save or pay off debts ?

robbiesbigtoe

I have come into a sum of money and I'm looking to buy a house, question is I have around debt on various credit cards, store cards and overdrafts.

What is the best option:
Pay off the debts using the chunk of money and add to the saved amount each month through salary until I have enough for a house deposit.

Or keep the chunk of money as it is and pay the debts off over the next 6 months using salary.

Just considering the amount of credit I currently have if making a mortgage application.

Thanks

jimjames

Clear debts that are expensive or will affect mortgage application. Credit used may reduce how much you can borrow so not clearing it might still be problem.

MadMat

what interest rates are you paying on the debts, and what interest rate does the savings account you plan to use pay ?

Mat