Hi there, was hoping to get some advice.
I've come into some money, and I will be using it to payoff some debt. But, I was curious to see what your opinions on what may be more beneficial for me.
Goal: purchase a home in 1.5-2yrs. (I have 10% saved from employer 401k, i am first time homeowner, and can withdraw from that source without penalty) Credit Score: 650
Debts: $7500 loan, from divorce (I got schtiffed) roughly 1.5yrs till payoff, monthly payment of $530
Credit Card: ~$7500. Variable payments, but I put $300 in payment a month on this. I havent used it in 6 months. (It's this high due to some medical as well as unemployment for 3 months)
I see it this way, I payoff the loan. Then I am able to use that extra to payoff the credit card sooner. This would lower my DTI ratio as well.
Conversely, I use the money to payoff the creditcard and get the boost on my credit score, showing a more stable score over the course of 1.5yrs.
Any thoughts, advice, or tips would be great.
Submitted May 05, 2019 at 04:23PM by bodoble http://bit.ly/2VPkvEs
