Quote:
Originally Posted by fosterj
We have: - 3 credit cards that tally about $10K (all maxed out) with 18-20% interest rates on the cards (about $600 month just to pay the monthly all together)
- A car loan for $27K ($600/month)
- My student loan $7K left ($70/month)
- we have a low credit score..(not sure on the exact..just know it's low)
- no savings to speak of.. $20 in one of our bank accounts till the next paycheck comes in tomorrow.
what we are trying to figure out is how to get to that house we so desperately need/want, but also to clean up our little financial mess of living paycheck to paycheck with never a dime to spare.
Here's the problem... how do we come up with $15000? |
Jeremy, I have to say it doesn't sound like you are in any position to be considering buying a home right now. You've got 3 maxed out credit cards (which is part of why your credit score is low). Despite having no savings, you took out a $27,000 car loan which is insane IMO. And you are living paycheck to paycheck. Even if you could magically come up with a downpayment, how would you afford the ongoing expenses of owning a home - mortgage, taxes, insurance, maintenance and repairs, furnishings, etc.?
You need to stop living beyond your means. You earned a decent income of 68K last year (I don't know where you live so I don't know how good that is). Sell that overpriced car and buy something for perhaps $5,000 or less. Review your spending to the penny and figure out what you can cut out - cable tv, dining out, extra features on your home phone, cell phone service, new clothes, movies, magazine subscriptions, etc. Then start putting every spare penny toward repaying those credit cards to get the balances down, which will help your credit score. Then you can start building some savings.
Unless you can significantly increase your income, I really don't see a house being realistic in the near future.