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Overpay credit card and save the money instead?

(6 Posts)
Bibs2014 Mon 10-Apr-17 12:32:33

Looking to put our house on the market and buy another one but not sure whether it’s better to overpay the credit cards to get the debt down (£17K owed all on 0%) or put that money aside as savings. Currently overpay around £200 a month.

Any advice?

wowfudge Mon 10-Apr-17 12:50:56

Get the debt down. It affects affordability.

johnd2 Mon 10-Apr-17 14:11:40

For complicated questions like that ask a mortgage broker.
It will certainly be taken into account by a mortgage lender, but whether it would stop you getting the mortgage you want depends on your other circumstances and the lender.
Are you stretching yourself to the Max for the new place?

ohdoadoodoo Mon 10-Apr-17 14:15:53

Absolutely pay off the debt before you start saving. That 0% isn't going to last forever and the debt is going to cost you more than what having no savings is. 17k is a huge amount to pay off a CC.

Bibs2014 Mon 10-Apr-17 15:14:59

John - I did ask a mortgage broker and he gave me mixed messages tbh. First he said rather than overpay, save the extra couple of hundred a month to go towards solicitor's fees. Then he said get the debt down.

He did say that the amount of debt I had wouldn't affect the amount of mortgage he was offering to me.

As for stretching ourselves to the max, we haven't even started looking properly yet, but we may have to if necessary...

LadyPenelopeCantDance Thu 13-Apr-17 12:08:47

Are you looking to take money out of the house to pay the debt? We paid off our debt with some of our equity so it wasn't taken into consideration for affordability when we bought the new house.

Might be worth putting the debt in to the mortgage as it will keep your monthly payments down.

Definitely seek advice.

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