I will be debt free by March but....

soon2b_debt3

Hi All,

I want to ensure I have a stable credit rating as I will be moving within the next 12 months due to the property I am currently living in being sold. I am unable to move in with other family members as there is no room in their homes so I need to get my own place.

Once I have cleared my debt in March my spare funds will be going in to savings for when I move out and an emergency fund.

I am also very careful with my money now so I live well within my means and have made several lifestyle changes for this reason.

On_my_way

soon2b_debt3 said:

Morning Everyone,

Once I've paid my debt off I'll be putting away around £450 a month in savings, this is to put towards moving out and my emergency fund. I have a feeling I will be asked to put forward a lot of rent in advance so most of the £450 will go towards the moving out fund.

I'm savings towards moving in to a rented property. I have no interest in getting a mortgage and I'm currently living in a recently deceased family members home until my family sell it.

I really wouldn't go and rent unless you HAVE to. If you can work up to saving at least £500 pcm you are better off staying put for two years or so and then buying  a property. By then your credit rating will have recovered a bit just by having a contract mobile phone. 

Sharon87

On_my_way said:

soon2b_debt3 said:

Morning Everyone,

Once I've paid my debt off I'll be putting away around £450 a month in savings, this is to put towards moving out and my emergency fund. I have a feeling I will be asked to put forward a lot of rent in advance so most of the £450 will go towards the moving out fund.

I'm savings towards moving in to a rented property. I have no interest in getting a mortgage and I'm currently living in a recently deceased family members home until my family sell it.

I really wouldn't go and rent unless you HAVE to. If you can work up to saving at least £500 pcm you are better off staying put for two years or so and then buying  a property. By then your credit rating will have recovered a bit just by having a contract mobile phone. 

Buying a house is a big commitment and it's not right for everyone, especially when you're on a deadline to move out. It will be less stressful for the OP to rent, especially as they won't be able to afford to save as much money as needed for a deposit and an emergency fund. 

OP I wouldn't worry too much about a credit card - especially if you don't feel disciplined enough - it won't affect your ability to rent at all. Or you could get one and put it in a drawer for genuine emergencies until you build up an emergency fund.

I never used to be disciplined with a credit card, so I still have debt. But now I am budgeting correctly I use an AMEX to get Avios points and pay it in full every month. A cashback card - whether money or points is useful if you feel disciplined enough to use it. Aqua have a good cashback card for poorer credit scorers if you feel like you want one.