M
He already said he's paying 2 of the 3 debts off when he gets his cash windfall at xmas. His question is how long he should wait from clearing the debts to applying for his mortgage i.e.as soon as they're paid off or until he has some more savings built up.You seriously should take Scotsgirl advice. If the CC rate is 20% p.a. the it's 2.8k you are paying on interest. Your 15k on deposit gets about 2% gross at best which is 0.3k. If you pay it now this time next year you are 2.5k better off.
He did indeed and the point we made was why wait till then.He already said he's paying 2 of the 3 debts off when he gets his cash windfall at xmas.
You don't say how much of a windfall you will be getting, but the way I see it if you plan to pay off the credit card and the personal loan - that's €24k, so you must be getting a windfall of that amount, if not more.
If you pay off your credit card bill from your €15k saved, that still leaves you with €1k in savings. That leaves you with personal loan and car loan amounting to €19k, which would still leave you with €5k minimum left over from your windfall.
So after paying off all your debts, you still have €6k+ in savings. Every month add whatever you would have been paying off your loans to this amount. Plus the bank might like to see that you can regularly save money before giving you a mortgage.
Even if you have one debt left when applying for a mortgage the bank will give you a reduced amount based on that loan.
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