How to buy a house when you’ve got debt and bad credit
For most Australians owning their own home is a major goal in life. Achieving a goal like home ownership takes commitment, and a plan.
When you’re struggling with mounting debts and bad credit, this can seem like an impossible task, but there is more help than you might have first thought.
Here’s a step-by-step guide to achieving your house dreams, without losing too much sleep over it.
It’s easier said than done, but being harsh with yourself can harbour good results. Quarantine your savings and swear to never touch them until you reach your saving target, keep a diary of all your savings and scrimp on your favourite purchases for a few months until you save enough for your deposit.
Be open-minded, realistic and flexible. The same size property on the outskirts of town is going to be a heck of alot cheaper than in the city center, so the less you spend then the sooner you’ll get into a house.
Find cheaper suburbs, consider an apartment and if you’re prepared to move, home ownership can become a lot more affordable. Here’s a list of the house prices in Australia’s biggest cities.
Consolidate your Debt
Contrary to popular belief, you can still put a deposit down if you’re struggling in debt. Your approval is based on the amount of debts you currently have, such as credit card debts, student loans, vehicle repayments, and others.
Consolidating your debts, paying off multiple debts under one single repayment, can cut out the middle man when you’re eager to relieve the issues associated with debt.
These payments can also be cut down into smaller, more manageable chunks so that you have more money to play with and save at the end of the month.
The Bank of Mum and Dad
It’s not a unique phenomenon, but your parents can cover your down payment in the meantime. Just ensure that you emphasise to your bank that it is a gift from your parents, to avoid the piles of paperwork you might have to encounter.
Patience is Key
It’s going to take a lot of time, willpower and commitment to stick to your budget without splurging at any point, but it’s all doable. If you’re a couple looking to buy your first house together it can be slightly easier as you’re saving money together, and can also provide each other with support.
There are many different ways you can save money, get your deposit down and start in your first home. For first time buyers it can be daunting experience especially, which is why it’s important to do enough research in order to live within your means and live happily ever after.
As they say, “don’t wait for the perfect moment, take the moment and make it perfect.”
Call Debt Mediators today for a consultation that can crack your debt woes in easy, manageable steps.