Best way to do things

adamj1984

Hi Guys,

I'm after a little advice if possible, I have some outgoings and I want to save a deposit for a mortgage - and I don't know which way around to do it.

So my financial situation currently reads as below

Council tax debt £2431 (paying off at £304/month) no interest
Car Finance £13,171, £399 per month @25% apr (terrible rate I know) the figure shown includes the lifetime interest, it was a 10k loan
other monthly out goings excluding rent, food, petrol etc £ £407

I started a new job in June which gave me a huge pay increase so I am now taking home around £3k after tax / month

I rent my current house and it is £550/month

My question is do I pay off the car finance first to reduce the interest, or do I save for a deposit whilst paying it off?

I know common sense says pay off the car finance @ 25%, but I'm also paying £550 / month in rent, I just cant figure out the best way to go about it.

Thanks guys

Adz

peb

You would probably get advice if you posted in the debt free wannabe section - you have posted in the diary section - a full statement of affairs would help though.

adamj1984

ah sorry wrong place DOH!