Mass debt currently focusing on the now rather than later life

ryanm8655

The £15k is interest free for 26 months - just make sure you're in a position to clear it by then.

Also set up a LISA with moneybox if you're a first time buyer. You can pay in up to £4k per financial year and get a 25% bonus for a house deposit. Have to have had it open for a year and can only use it for that purpose but worthwhile.

I pay in a token 5er a week at the moment. Should be debt free by April so just plan to pay in whatever spare I've mustered before the year end.

2022ismyyear

@ryanm8655  Yes - I’m going to put a plan together so I can ensure I meet the 26 months. 

In regards to the LISA I have actually got a Help to Buy ISA already with an amount saved. I have also opened up a LISA putting £1 a month just incase I decided not to buy a new build I can just transfer it over I believe.

Doneby55

Just to echo what others have said re. Pensions - if it is the LGPS you can join, it's a very good deal compared to most private pensions, and there are other valuable benefits too - like death in service benefits - don't neglect these...

sharpe106

2022ismyyear said:

@webnibbler @ryanm8655 @onwards&upwards @sharpe106

You have all pretty much given the same advice so I am definitely going to start contributing again to the pension! I would be shooting myself in the foot really if I don’t.

Thanks for your help I appreciate it! I will just have to delay the debt free date and housing buying back a few extra months! ☺️

I would pay the pension and look at the house buying still, the debt is not really causing you any major issue. Rent is dead money if you are planning on buying anyway. So even paying the interest on the debt as it is if you by you now would still save you money over the long term.

2022ismyyear

@sharpe106
Are you suggesting buying a house while I’m still in credit card debt? To save costs in the long term on renting.

sharpe106

Up to you if you want to or not. But if you are paying say £700 a rent each month that is dead money. Your debts are interest free so not actually costing you anything. Obviously it will affect how much you can borrow.

Elby

2022ismyyear said:

@ryanm8655  Yes - I’m going to put a plan together so I can ensure I meet the 26 months. 

In regards to the LISA I have actually got a Help to Buy ISA already with an amount saved. I have also opened up a LISA putting £1 a month just incase I decided not to buy a new build I can just transfer it over I believe.

The Help to Buy ISA isn't just for new builds, it's just for anyone purchasing their first home (old or new build). The Help to Buy Equity Loan is for new builds, not the ISA. I live in Wales but I'm pretty sure it's the same in England.

2022ismyyear

@Elby
Oh amazing news, thanks for your comment! That’s even better then might as well just leave the money where it is then and not bother with the LISA.

Applewood1

Just wanted to add about the pension - definitely do not delay in paying into it, especially if public sector. How much of a deposit are you looking to save for the house purchase? Are you a solo buyer? 

2022ismyyear

Applewood1 said:

Just wanted to add about the pension - definitely do not delay in paying into it, especially if public sector. How much of a deposit are you looking to save for the house purchase? Are you a solo buyer? 

Yes I am a solo buyer. Probably around £15k for the deposit plus fees on top max around £2k.  I already have 8k saved.

I manage to pay off some of the debt today so down to £13k which is good. 

Just need to figure about a rough plan to pay off the debt and save enough for the rest of the deposit in a reasonable amount of time. Currently renting so feel like I’m throwing money away which could go on a mortgage for probably cheaper!