2006-11-09 20:26:08 · 14 answers · asked by Le Tussock 2 in Business & Finance ➔ Personal Finance
Pay off all your debt AND DO NOT make more for yourself !!!
Far to often people pay off their debt then decide to go shopping which digs them yet another hole !!
ONLY YOU can take care of your finances the right way. If you don't do it, no one else certianly will. Get rid of your debt and then power save for your home. Its all about choices. CHOOSE to be debt free and a homeowner and life will just keep getting better and better!
Happy Friday!
2006-11-10 01:05:36 · answer #1 · answered by Kitty 6 · 0⤊ 0⤋
usually buying the house would be prority #1, but it depends on the type of debt. if it's a student loan at a reasonable rate, or a debt to a benevolent family member or something, then buy real estate.
if it's a department store card at 28%, then pay it off!
if it's to a bookie who knows where you and other family members live and work, get a second job or steal to pay it off asap.
the other factor is how long you will be carrying the debt, while you rent, as you try to save a downpayment for a hou se in a market that keeps rising.
real estate, especially your primary residence in a thriving urban area, is by far the best investment you can make, and it might very easily outperform your debt, if you can afford to carry both.
remember, if a house goes up by 5% per year in value and you only put 25% down on the house in the first place (even better if you put down less), that's about 20% return on your investment and it compounds for you, sort of, because as the property goes up in value over the years, your percentage of ownership also rises.
having good, clean credit sure helps finding financing, though.
maybe you could assume a mortgage?
2006-11-10 04:55:55 · answer #2 · answered by CamP 3 · 0⤊ 0⤋
Paying off debt. The interest rates are normally higher than mortgage rates, so the longer you have your debt, the more it is going to cost.
Also, with the house prices sky high and interest rates on the rise, it will take you longer to save for your house. So it's better to sit back and hope that the prices will go down while you save a bigger deposit.
2006-11-10 23:56:40 · answer #3 · answered by m00nlight1ng 2 · 0⤊ 0⤋
With the Bank of England hiking interest rates up to 5% a mortgage costs a lot more now.
Your priority should be to pay of your debt. If you do not pay it off then you will be placed onto the bad creditors list. This will stop you getting any form of a loan for years. Is it really worth it?
If you are finding it difficult to pay of your debt then visit your local CAB office and ask for help.
2006-11-10 04:44:01 · answer #4 · answered by Nutcracker 3 · 0⤊ 0⤋
Pay off your debt and then save for a house! Trust me! Your credit rating will improve if you do. Being in debt has hidden problems that can damage your future. 5 years ago, I owed £20,000 in loans, store cards, catalogue and household bills. I am now debt-free after a hard struggle and begining to re-build my life. I recently got a Mastercard (which I only use for emergencies) and the woman who activated my card seemed surprised when I said I had no balances to transfer onto it! I was bloody proud of it!!! Clear your debts. It's a wonderful feeling to be back in control!
2006-11-10 04:33:10 · answer #5 · answered by Pixxxie 4 · 2⤊ 0⤋
pay off debts only if you are paying interest ie not borrowed from relatives.otherwise saving for the house is a false saving because of the interest you would pay and the debt remaining
2006-11-10 04:38:43 · answer #6 · answered by paul t 4 · 0⤊ 0⤋
Most likely, paying off debt. But, it depends on what interest rate you are paying on your debt. If you are paying off a consolidated schoo loan, saving for a house is a good idea. If you are paying 28% on credit card debt, then debt payoff it is.
2006-11-10 04:53:48 · answer #7 · answered by Erik N 1 · 0⤊ 0⤋
Depends on teh size of the debt, but given the way house prices are increasing, you might need to get on the housing ladder as soon as possible. Talk to a bank manager, and see if the debt could be incorporated into a mortgage.
2006-11-10 04:32:54 · answer #8 · answered by hallam_blue 3 · 0⤊ 0⤋
Paying off your debt, the longer you have it the more it costs. The money you save by paying it off can go towards your House deposit
2006-11-10 04:32:07 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Pay off your debt and save as much as you can!
2006-11-10 04:37:10 · answer #10 · answered by MC 7 · 0⤊ 0⤋