Re: Loans V Credit Cards V Savings

In an earlier contribution to this discussion,
GraemeC <graeme.cunningham@xxxxxxxxxxxxxx> wrote:

I have a debt of around 10,000 split between credit cards and loans.
I also have savings of 2000.

I am looking into getting a mortgage in a couple of months.

I know that if I were to use my savings to pay off some of the debt I
would reduce the amount of interest I am paying but I have been
keeping it in case of emergencies.

From the point of view of a bank lending to me. Is it better for me
to use the savings to pay some of the debt off are stay as I am?.

Intuitively it would seem like reducing the debt would be better but I
know that banks are really only interested in your ability to repay so
having savings would seem to reduce the risk for them.

Also given that my loans and credit cards interest rates are
approximately the same do the banks have a preference for where your
debt is.

thanks in advance

G

If you're buying a property with the mortgage, doesn't that require a
deposit? Where is that coming from?
--
Cheers,
Roger
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