Hi all, new here but hoping to lean on some people for advice please.
I have been saving over the past 18 months and have managed to save £20k. I have some of my furniture on finance, a phone contract but nothing major. All in all £180 a month.
My question is, would it be best for me to clear my debts/finance loans or keep these in place and use the savings for a house deposit?
Specialist · Los Angeles, CA · Member since 2020 · 91 posts · 53 votes
4y
Hey! All depends on your risk tolerance and your current income. I'd say if your current income can cover your monthly expenses, it's worth allocating some of your savings towards investment funds. But make sure to continue saving and to leave some money in the savings for a rainy day. You don't want to be caught in a bind with no reserves.
Lender · Member since 2019 · 250 posts · 219 votes
4y
Hey ella, if your DTI is not heavily affected by your liabilities then it all comes down to how comfortable you feel purchasing something while having that monthly payment. Personally, I would rather keep the low monthly payments on my loans and use all of my available capital to get into real estate. :)