Here Goes...Starting Up on a Journey

Superhoopza

Andyjflet said:

Superhoop91 said:

Andyjflet said:

I am going to bookmark this thread, I'm finding it fascinating that we have the idea of borrowing our way out of debt. Take a look at a snowball repayment calculator for the debt and see how the rates will look 18 months from now once your credit stream dries up.

I'm talking from someone who has been there and done it, I snowballed my way out of debt by paying one card off at a time and it eventually took me 4 years, some weeks I didnt eat for two days to achieve this, take a look at my signature, at one point in 2019 I had more debt than you. 

Why would the rates look higher in 18 months if I am reducing my balances?

Substitute the word "rates" for balances. 

It might be easier if you reexplain your point then

Floss

Superhoop91 said:

Floss said:

Superhoop91 said:

DMP definitely the least costly alternative.

Paying off the debts with high interest seems far better for a mortgage from what I'm reading. Think it's making my mind up for me.

How will you save a deposit, and meet the affordability requirements of a mortgage? The application process will look at your existing debts, available credit and income.

If I pay them off, I'll have no existing debt, high available credit and decent income but nothing saved for a deposit.

versus

Settled defaults on file for 6 years, none/little available credit as creditors withdraw it after I default and £20k odd for a deposit.

Not necessarily the best combination - your borrowing capacity for a mortgage can be reduced if you have a high available level of credit, regardless of whether you are using it.

Superhoopza

Floss said:

Superhoop91 said:

Floss said:

Superhoop91 said:

DMP definitely the least costly alternative.

Paying off the debts with high interest seems far better for a mortgage from what I'm reading. Think it's making my mind up for me.

How will you save a deposit, and meet the affordability requirements of a mortgage? The application process will look at your existing debts, available credit and income.

If I pay them off, I'll have no existing debt, high available credit and decent income but nothing saved for a deposit.

versus

Settled defaults on file for 6 years, none/little available credit as creditors withdraw it after I default and £20k odd for a deposit.

Not necessarily the best combination - your borrowing capacity for a mortgage can be reduced if you have a high available level of credit, regardless of whether you are using it.

Well then I could just close a couple of accounts of credit couldn't I? 

Floss

You would better your chances by closing each account when it is cleared. 

How do you propose to save your share of the deposit?

Superhoopza

Floss said:

You would better your chances by closing each account when it is cleared. 

How do you propose to save your share of the deposit?

Keep spending less than I earn, the usual way people save. 

stymied

Good luck!

Can you take on a second job for a few months to jump start your progress?

Superhoopza

Thank You!
Unfortunately not, my hours are long as they are. I'm seeing if I can get to do a few decently paid market research projects though

Floss

Superhoop91 said:

Floss said:

Superhoop91 said:

Floss said:

You would better your chances by closing each account when it is cleared. 

How do you propose to save your share of the deposit?

Keep spending less than I earn, the usual way people save. 

Good luck with that & paying down your debts at the same time.

Was there a point to saying that except a sarcy and unsupportive tone? 

Was there a point to your comment? Mine was meant in good faith.

Andyjflet

I'll hang around anyway and see how its going. 

Superhoopza

Andyjflet said:

I'll hang around anyway and see how its going. 

Whatever you get a kick out of.