Sould I pay off my credit cards or use my savings for a downpayment on a house?
I have roughly $7500 in Credit Card expenses? I have enough to pay off one of my credit cards, but then, I won’t be able to buy a house for another year or so.
Tags: Cards, Credit, downpayment, House, savings, Sould
if things are that tight,forget it….work more,spend less,save more….
Not enough info – we don’t know what size house you are looking for (cost), how much you make and can save per month, etc. For example, if you make, say $50,000 a year and were buying a $125,000 house, you don’t have enough saved now anyway. You would need at least $4,100 just for the down payment (3.5% FHA down payment), and then another $3,500 to $6,000 for closing costs and another, say $5,000 in savings for living expenses. So all told, you need a minimum of $10,000 in the bank – and that is a bare minimum. A smaller house you may have enough to get away with.
I think you should pay off the credit card(s) and buy a house later, and stop accumulating credit card debts. I just think it’s important to be debt free first, that’s the priority. Then next priority is to budget and save more and work on increasing your income somehow, with raises or get a higher paying job. The next priority would be the house, after that.
Personally i think you should get the cards out of the way and off your plate. I think you need to go into the process of buying a house with as little debt as possible…so you don’t have he added stress. Houses will still be super affordable next year (more then likely) and you will still be able to get a great deal. As much as it sounds like a crappy idea…if you are really wanting to get into a house sooner then later…pick up a second job doing something easy. Heck, go deliver pizzas and sock all that money away for the house…you will have them money in less then half the time it would take you just to save from your normal paycheck. Just an idea…a few months a hard work for a very big payoff. Good luck and get those cards payed off!!!
uhhhhhh this is a tough one cause you don’t want to keep being in Debt. if you really found a house that you love and you’d love to live in for years and years (get married and have kids in) THEN YES!! if not then no take care of your Debt
If you do not get the house try this. pay off one of the credit card and take the money you were spending on it to build up a small emergency fund of about $1,000 so that if some thing bad happens you will not have to use a credit card . when you have the 1.000 save then use the anount you out aside each month for that and add it to the other credit card balance. when they are paid off build up your savings with the payment money
g’day d
as long as u pay off credit card on time, no dramas,borrow money from bank,if u can,depending on size of loan.over here in oz,1′st home buyers,
get $ 24,000 up front from federal government,on new house,or unit.
we owe $ 1.2 mil to bank’s,on six properties,so we know what we are
doing,we hope.
regards
kirrakid
oz