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Debt + deposit best route?
Options

SLZ
Posts: 233 Forumite
So only a couple of weeks ago I was contemplating a DMP but since I've got a new job with signing bonus which enables me to bring my debt back under control and with this job paying significantly more, I want to truly get my deposit under control properly which leads me to wonder which is the best route to go about it.
Option one is to overpay my debts and pay it off within 1-1.5 years leaving me free to put all the money towards my deposit in the 2nd year with up to £1,000 a month which should net me £60,000 minimum within 7 years (incl. debt repayment time).
Option two is to slightly overpay and put £800 aside each month and within 6 years I should hopefully net £57,600 but my debts would take up to 3 years to pay off in full.
I'm currently favouring option two as within 6 years I'll have a sizeable deposit as well as my debts being paid off in full with the difference being only a couple grand and the sooner I can buy a place the better I'd say but maybe I'm looking at it all wrong, hence why I'm asking whether I should forget about the side by side and wait longer to buy a house but be more stable debt wise.
What would you guys do if you were in a similar position?
Option one is to overpay my debts and pay it off within 1-1.5 years leaving me free to put all the money towards my deposit in the 2nd year with up to £1,000 a month which should net me £60,000 minimum within 7 years (incl. debt repayment time).
Option two is to slightly overpay and put £800 aside each month and within 6 years I should hopefully net £57,600 but my debts would take up to 3 years to pay off in full.
I'm currently favouring option two as within 6 years I'll have a sizeable deposit as well as my debts being paid off in full with the difference being only a couple grand and the sooner I can buy a place the better I'd say but maybe I'm looking at it all wrong, hence why I'm asking whether I should forget about the side by side and wait longer to buy a house but be more stable debt wise.
What would you guys do if you were in a similar position?
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