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Mortgage application - pay off credit card or leave savings untouched.

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Comments

  • #52
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,550 Mod ✭✭✭✭johnnyskeleton


    Asa Damp Maid wrote: »
    That a lot of hassle for the sake of a few euro, messing around getting loans etc for something that gets paid off so quickly and often these things are impulse buys anyway.

    I would only get into short term debt for a purchase that i absolutely needed e.g. home/car repairs, medical expenses. If i wanted to buy a 50" tv but didnt have enough to pay for it straight away, i wouldnt buy it. Id save up instead. Maybe, if i was half way through savig and a good deal came up, it would make financial sense to buy it on credit. But otherwise not.
    I don't see why the bank would have a problem with a credit card balance that fluctuates between cleared and a few hundred euro when you could easily clear it if you wish but instead are saving money.

    They would love it. The CC bank are getting loads of interest of you, and the mortgage bank will see that they can bamboozle you onto the worst rates e.g. 1 ear low fixed then onto standard variable rather than an LTV rate etc.

    But why would you save and borrow at the same time? The interest on the card is far more than the interest youd get on the savings. If you are saying that from a personal or psychological viewpoin then fine, that mght be the way to go. But its bad financial sense.


  • #53
    slowjoe17
    Registered Users, Registered Users 2 Posts: 110 ✭✭slowjoe17


    loveisdivine wrote: »
    Thanks for all the replies. I've decided to pay it off. If the bank don't like it, then I guess we will have to wait an additional 2 months and go back when we have a full 6 months of no debt and not touching savings.

    I think I'd rather do it that way, at least now, I'm debt free and it's one less thing for me to worry about.

    We've never taken out any loans and never missed any payments on credit cards, so that's 1 thing at least.

    The correct thing to do for the sake of your finances is to eliminate the high interest debt.

    If the financial institution takes offence, then count it as a blessing. They are likely to be unpredictably and insanely stupid in other scenarios.

    Considering that a mortgage is financial relationship that can last 25 years (longer than many marriages), dodging a stupid bank is not a bad thing.


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