should I pay cc debt off out of my house deposit?

[Sunflowersausage]

I don’t know what to do here.
i have £50k cc debt. £7.6k net household income plus monthly adhoc extra income of around £100 a month. £12k is on 0%

we want to buy a house (2 adult one dc household)

Have £200k house deposit. Got myself in a complete twist as to how to manage this.
in my head I’m thinking wait until next year when I’ve paid off credit card out of income and then buy a house once it’s paid down which would probably be by next year August.

part of me thinks with house prices rising I might pay off half and then settle for whatever house is £25k less as I might lose more in the long run if I don’t buy a house now.

or I get a smaller house £50k less deposit and deal with card debt now.

I'd pay off the CC. If you need a mortgage, the provider needs to know about that debt which will affect how much you can borrow / affordability. There must be so much interest of 50K of unsecured debt.

@TooManyCupsAndMugs thanks yes there is a lot of interest!

I think £50k of CC debt is going to affect your affordability? I would pay that down/off

God yes, pay it off before taking out the mortgage

Pay the debt off.

You will save on interest. Even if you need a mortgage of £50K more it will be a cheaper monthly debt as it’s spread over 25 years:

Credit card debt is very expensive, you must be wasting hundreds of £ a month on interest.
How have you managed to to get into such debt whilst saving for a deposit? Put money aside then spent on CC instead? That's really not sensible.
Pay it off in other words! And never again spend more than you have.

Pay the bit that isn’t on 0% odd now. Then pay the £12k off before interest is charged. Don’t use credit cards again unless you can pay them off the same month.

This!

Definitely pay off the debt first. Debt like that on your household income is going to impact what mortgage you can get, it would end up costing you a lot of money in interest if you end up having to go with a more obscure lender

Pay £38,000 off asap. Keep paying off the £12,000 through wages until the 0% interest kicks in.

When I was getting a mortgage they wanted to know how much I spent on going to the cinema never mind whether I had a forty thousand pounds credit card bill!

You will get there.

Pay debt off

the interest you are paying on £50k must be insane and prob far more then the 3/4% interest in a bank account

As a minimum pay off the 38k that’s not interest free now. How did you end up with such a big credit card debt? Is it likely to reoccur soon?

Credit card interest is typically 20-25%+
Savings interest is typically 4-4.5% or less

So that 50K cc owed is going to be massively more expensive over a year than you'd get in interest. Pay off all the interest bearing CC NOW.
Pay off the 0% interest by the minimum amount per month every month - don't miss a month or you'll get hit for interest. Save the rest.
Then when your 0% period runs out, pay the balance off. This should be 6 months or so before you are looking for a mortgage, so it improves your credit score and thus allows you a better borrowing rate..
Don't spend anything on your CC unless it's something big (eg holiday, furniture) you might want the security of charge back AND you can pay it straight off before interest hits.
Don't ever borrow more on your card than you can comfortably pay back in the interest free period again!

Echoing others. Pay if the 38k accruing interest immediately - like tonight!
Then look at the rest of your finances, and think what to do, but that bit is easy, instant savings.

@ToKittyornottoKitty it was really really stupid purchases.

Credit cards have been cut up now and we are living within the monthly salary including paying off the cards. Looks like paying it off makes the most sense then.

While credit card debt can effect your affordability it's worth speaking to a broker.

When we was applying we asked about paying off all the cards and she advised to pay it down to 60%. Think the worry is that you pay it off and you just rack it up again after. Although our was no where near that amount

£7.6k net income per month? How much are you looking to spend on a house?

@MereNoelle not 100% sure yet. We are now hoping to move to a cheaper area to accommodate this credit card stupidity tbh.

Definitely pay off all your debt and look at what you can borrow with a £150k deposit and a £7.5k monthly income. Hopefully this will be a suitable house where you live.

But before you do this, you need to work out a budget, one that includes all your regular and irregular household spending and savings, so you have money behind you for loss of income, big purchases like cars and home improvements etc. If you are prone to overspending, it's probably worth separating your money into pots, to cover the following:

Mortgage/bills
Food and other essentials like travel/petrol
Savings for annual and irregular expenses, emergency fund, planned large purchases

Whatever's left after everything essential and joint agreed spends on Christmas, holidays, child costs - activities etc, you can ear mark for 'optional spending for adults' on a 'when it's gone, it's gone' basis. Do you know what the debt has been spent on and whether it's both of you or just one of you?

@Bjorkdidit thanks yes I only work pt so I’m hoping to go ft after the move as don’t want to get a new job then move areas and then have to get another. Also don’t want to over borrow on a house.

it wasn’t anything big and we have nothing really to show for it, it was mainly interest from a few things bought by dh and only paying of the minimum every month led to this big sum but now we’re paying off as much as possible after bills.

Normally I'd say pay all the credit cards that have interest and then pay the other off within the year, but if credit cards have been a problem for you I'd get rid of all the debt now and keep the credit cards with zero balance. Don't rely on credit when you move into your house. How much will you save per month in repayments?