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Originally Posted by jamreed02
After we have the EF set up in our local bank account, we'll start a debt snowball. Right now, we've got 2 credit cards: #1 is $6588 at 17.24 %, #2 is $2087 at 23.99%. We'll pay off #2 first, then #1. I called #2 today and requested a lower APR, which we should get... our credit score is very good, I've never paid my bill late with them, we have a good debt to limit ratio, and we have excellent credit (just over 700 FICO). #1 is the one that keeps getting bumped over the limit.
 I have an offer to transfer all my balances to a new card at 0% interest for a year, then 8%. Should I consider that? How much will it affect my credit score? We want to buy a house soon, so credit score is important to us right now. |
That balance transfer sounds good. Make sure you read the fineprint and understand their fees, so you aren't surprised later. It's tough to predict what that will do to your FICO, but that will save you over $130/month, so I wouldn't worry too much about the FICO. Also, paying down your balances and lowering your utilization will increase your FICO.
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Originally Posted by jamreed02
Do you think we should save a 20% (approx. $20K) downpayment on a house, or start the retirement accounts first and try to find an apartment for $100-$200 extra in rent or stay where we're at and tough it out?
After we've got the house, and are contributing a solid 15% to retirement, then we'll start funding the college funds again. |
You don't need to save 20% to get into a house. It helps reduce the expense by eliminating the PMI, but you can get a mortgage with less. Consider starting a Roth IRA, because your contributions could be available to help with your downpayment. That way, you can start saving for a house and for retirement at the same time.
$200 extra a month to get away from the in-laws.
I would have to meet them to decide whether that is a good investment.