Money Matters
simsk3887
member
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Down Payment vs. Paying Off Credit Card
Hi Everyone-
I posted on the Buying a Home board about something unrelated but we are hoping to buy a house in late August this year, granted everything works out. We just came into some extra money at the end of the month between now and August and my question is this...Should I use it to pay down a credit card with about $6000 balance on it, or should I put it away towards a larger down payment for our house? I'm not sure which would help us more and am looking for some advice. I pay approx. $200-250 on the credit card monthly, and do not use it for purchases, I am simply paying off an old balance. It doesn't seem to be making a huge deal in our mortgage application as our credit scores are both about 750 and we have good income as well. We are planning on asking for seller assist with the closing costs, as we have enough for a down payment now and want to make sure we have enough in savings to also make any improvements we may have to. So simply put, do I save the remainder of the extra money, or do I pay down the debt?
Thanks in advance!!
Re: Down Payment vs. Paying Off Credit Card
How much debt do you currently have? Is this 6k on the credit card it, or is there more? I know this isn't a popular opinion, but I would pay off all debt before moving into a house. When the AC goes out in a house, you have to pay for it, when it goes out in your apartment/rental the landlord does. Do you have an emergency fund set up, if you are dead set on buying the house in August? What are the chances of you having this credit card debt paid off by then?
I'm afraid right now it looks like we have too many questions for you to give you an answer! Assuming you already have your 20% down payment saved up, plus an emergency fund, and this is your only debt, I would use the money to pay off the credit card. Get it out of your life because the credit card rate is probably pretty high- and between now and August throw any extra money you have at paying it off- this will take you a LONG time if you are only paying $200 to it a month! Really look at your budget and see if there is anything else you can cut to pay off this credit card quicker.