Hello. I am new the boards and seeking come financial advice regarding a difficult decision I will be facing in the near future.
I am single mom of a 2 yr old and a 4 yr old. I currently rent a home in a fantastic town with fantastic schools and reasonably priced homes. I would like to settle and stay here, and I would have the financial means next summer to buy a home. However I have been recently listening to Dave Ramsey and I am wondering if it would be best to use my home downpayment to pay-off my car loan ($12k) instead? My interest rate on my car is 8.5% and it's a 48 month term which will be paid off in 2014.
The financial saavy part of me thinks paying off the car would be the ideal move and wait to save up some more cash to buy a home the following year... however my landlord has mentioned possibly selling my rental next August 2012 when my lease is up which means I would have to move. Finding another rental in the area would be very difficult, and I would prefer not to leave town when my son would be starting in public school.
So what would you do if you were in my shoes? Use the money for a downpayment on a home? Or pay-off the car note? I am seriously torn and don't know what to do???
Thanks!
I am single mom of a 2 yr old and a 4 yr old. I currently rent a home in a fantastic town with fantastic schools and reasonably priced homes. I would like to settle and stay here, and I would have the financial means next summer to buy a home. However I have been recently listening to Dave Ramsey and I am wondering if it would be best to use my home downpayment to pay-off my car loan ($12k) instead? My interest rate on my car is 8.5% and it's a 48 month term which will be paid off in 2014.
The financial saavy part of me thinks paying off the car would be the ideal move and wait to save up some more cash to buy a home the following year... however my landlord has mentioned possibly selling my rental next August 2012 when my lease is up which means I would have to move. Finding another rental in the area would be very difficult, and I would prefer not to leave town when my son would be starting in public school.
So what would you do if you were in my shoes? Use the money for a downpayment on a home? Or pay-off the car note? I am seriously torn and don't know what to do???

Thanks!
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