Debt And Buying A House
Posted on
July 5, 2009
at
9:47 pm
I have about $9,000 worth of credit card debt and I'm planning on buying a house in a year or less, is it possible, or even wise to to buy a house when one is in debt?
Posted on
July 5, 2009
at
9:52 pm
I think it's possible but that depends on your lender--he/she might pull out a copy of your credit report and see if you're worthy. As for..if is it wise to buy a house when you're still paying off debts...I suppose that is subject for discussion/debate. Some would say that it is better to pay for a house (which is considered as asset) than paying rent (which basically just an expense)..
Posted on
July 5, 2009
at
9:56 pm
I see what you're saying here, and thanks for the reply...I also saw a thread here that was talking about what good debt and what bad debts are....and now I wonder if this is a good kind of debt..
Posted on
July 5, 2009
at
10:03 pm
You must be talking about this thread:http://www.destroydebt.com/forum/t/6574-why-is-debt-good.htmlAnd buying a house, especially in an area where home values are rising, then I suppose it's considered an investment, a good debt..
Posted on
July 5, 2009
at
10:09 pm
Wait a minute- what sort of a house are you trying to purchase? Is it a government owned house, a foreclosed house, or a new house, your first house? Are you only concerned about whether or not you are going to be granted (qualified) a loan? Do you have enough cash for down payment, closing costs, and reserves?
Posted on
July 6, 2009
at
12:13 am
You said that you are buying a house in a year or less...does your job involve traveling and in a year, it won't be so, that is why you are buying a house? What I'm saying is that, if it makes more sense for you to rent and pay off your debts, forget about buying a house until your conditions (financial, job, etc.) dictate that you should buy a house. My vote is for you to pay off that $9,000 debt first before taking out another debt (loan) to finance that house in question. Credit card debts have high interest rates right? Start subscribing to the G.O.O.D. principle (Get Out Of Debt).
Posted on
July 6, 2009
at
12:20 am
I am reading your replies, and as excellent as they sound, they made me feel more confused-- than before I posted my question! But thank you all for replying...and yes, Tapestry--my job involves traveling, but it would soon stop--If you say that it's better if I pay off the credit card debts first...my question is HOW..can I do that in a year's time? I've even already defaulted on some of those cards...
Posted on
July 6, 2009
at
12:30 am
Hi Guido, you feel confused because your situation is confusing, but not at all invalid. You are somebody who is in debt but is thinking about buying a house. While some would say that it's always the best move to pay off debts first--while at the same time trying to save money to buy that house--Others would disagree and say that owning a house is always a lot better than renting a place--that paying off your credit card debts, actually keeps you from buying that house together with paying the rent. The own a house advocates would say that you can instead build wealth and take advantage of the tax benefits that home ownership can give.
Posted on
July 6, 2009
at
12:44 am
Okay since you said that you have already defaulted on some of your credit card -- you can try settling those with your creditors. Call them and try to negotiate the payment terms and/or the interest rates.If you are too busy to negotiate, there are a lot of debt relief solutions out there that you can try: credit counseling or debt settlement. If you want to know which one fits your financial situation and to eliminate all the confusion--why not speak with a debt expert instead? Fill out one of the forms that you see around and get matched up for free.
Posted on
July 6, 2009
at
12:47 am
I think x and y just gave a position there: pay off your debts first then save up for that house. That's my position too, you don't want to bring old debts (that interest rates tend to increase the longer it doesn't get paid off) to that new house.
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