WWYD?

[Dsunny1]

We are buying a house sometime next month. I don't think our first payment will be due till October, so until then.. I can save what would have been two rent payments (the owner is letting us move in monday before we close as he is a friend of ours). My DF is deployed and making decent money now, but we are both nervous about his income when he returns in December. I have saved almost two house payments already, and plan to have at leave three full mortage payments ready in my savings before he returns. My question... should I pay off the 2500 I owe in credit cards with the extra money I will have not paying rent for two months... or save it and pay the usual 200-300/month I have been putting toward them. I really want to have three payments saved AND my credit cards gone by the time he gets home and can't sort it out enough to decide what would be better now. Once the house payments start, money will be much tighter then it is now... Thanks for you help! I am very new to all of this...

[3-boys-4-me]

Pay off the cards and SAVE the interest you would be paying monthly to the credit card companies. Much luck to you, and congrats on your new home.

[kabin63]

I agree with Lisa. Not only will you save the interest, but you won't have to make the payments anymore, which then frees up the money. Then you can soley concentrate on the mortgage.
Congratulations on your new home and upcoming marriage and good luck!

[Dsunny1]

OK, Thanks! that is what i thought, I just needed someone else to tell me.. LOL I can't wait to be in the house, it is hard to not spend money when moving, especially on eating out.... I will be back on the Wagon starting Tuesday. I think I am going to try to have a garage sale sometime in August, my new neighborhood is AWESOME. I am so excited. Thanks for all the well wishes.

[frugalfarmwife]

As long as you can stick to putting the previous CC payments away and build up a good EF I agree with the others, get rid of that nasty CC debt and put the cards away, lol, the best is freeze them in a block of ice, it works!

Congrats on the house!

kj

[Jenna]

I'd lower the interest rates on the cards with a BT. Then pay off the card one month before the end of the offer - though some cards offer a low rate for the life of the BT (not just the first 6 months.)

Following the BT rules is important. As is not adding additional purchases to that card.

Assuming the BT is done, I'd make normal monthly payments, and keep the bulk of the cash saved in a high interest savings account.

[PrairieRose]

I'd pay off the cards, save maybe $500 for any emergency you might have during the move. But really concentrate on the credit card debt and getting rid of it. Have fun moving!