Hi

This is my situation…

Debt:

Approximately 10K debt on mastercards
7k loan


Basic monthly outgoing :

480 loan repayment + 400 mastercards + 350 per month rent = 1230 per /month

Im currently on 35K salary (permanent job). Bust struggling to save for mortgage!


What can I do to get out of this situation? I wish I was paying 1230 a month toward mortgage L

Are you over-paying your credit card at the moment?

If you are not then you have a card with a high APR.

Credit Card Balances keep you poor.

Are you on a Balance Transfer deal for the outstanding balance? If not get on one as then you will be reducing the amount you owe and not just paying the interest and a little bit of the outstanding balance.

Until you address the credit card issue I wouldn't advise that you even consider a mortgage, it will choke you in financial terms.

You need to tighten the budget on everything you spend and concentrate on paying off the credit card. This will be painful as it requires you to face up to your current situation but eventually you will be in a poisition to get a mortgage.

Totally agree with the above post, you need to sit down and complete an extended financial budget planner and see where your money is going each month, make sure that you have the best prices possible for things like your utilities and insurances etc and make sure that no other savings can be made.

Then address the debt and overpay, overpay, overpay, get rid of it before even thinking about taking on a mortgage.

There is a very tempting option. And that is debt management. However do not be fooled by the hype. You could bring down you credit card and loan payments down to around £150 a month however it will completely ruin your credit history for at least 5 years possibly more.

So take the advice and pay as much of the one card as possible. Concentrate on the card with the highest APR and get that one paid off first. Judging by the loan payment you wont have long left on the 7k loan before its paid off maybe 16-18 months. Once that said you could save £480 a month so wont take long before you have a deposit.

Home owning is not all its cracked up to be as you do have a lot of extra responsibilities such as buildings insurance extra life insurance and critical illness cover to protect your mortgage. Then you will need money for maintenance and believe me it can be expensive.