Ok so if you've read my other posts, you know my situation. Quick background: we're looking to buy a house within the next year. We are living in an apt in my parents house to save money. Hubby lost his job in Feb and is unemployed and looking. Another interview this week...fingers crossed!
We are debating what is the best thing to do with our wedding money. We got a big chunk. Hubby has some debt. Do we take ALL of that wedding money to pay off debts? Or take half the money for debts and save the other for downpayment? I hate to see all of that money go...I know we're going to have to get rid of that debt though and it will effect us getting a mortgage.
We are torn. I dont know who to speak to about financial advise. People at a bank? Who can help give us an unbiased opinion? I feel like what we do right now with this money and saving is going to be a big part if getting on our feet, yaknow?
sooo what would you do? TY!!!!
Amberrenee6705
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Re: wedding money- pay off debt vs downpayment
When we went for our house loan they literally made us pay of 80% of our debt to raise our credit scores (for better interest rates) so I think its best to just get rid of it first. The better credit score you have, the better loan you get and thus giving you a small down payment/closing cost This is what we are going through right now....
MrsC2010
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Re: wedding money- pay off debt vs downpayment
pay off the debt!
AdriandSteve
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Re: wedding money- pay off debt vs downpayment
I think it depends on what kind of debt. If it's cc debt the I'd pay it off. But if it's school loans I wouldn't pay it off and continue to pay monthly.
If your not exactly sure what you want to use it for I'd put some of it into a cd to gain some interest.
ourwedding9510
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Re: wedding money- pay off debt vs downpayment
Posted by SoontobeGallagher
I would say to pay off the debt and start fresh. It's harder to save and to pay off a mortgage when there are other bills lingering around.
ITA! We took the money and put a downpayment on a car (I NEEDED one) and paid my dad back. We put our wedding money in a joint savings accounts and haven't really touched it yet. I don't have much debt and DH has only some (we're taking part of the wedding money to pay off the cc we got for the HM payments). So we figured we would let the rest of the money sit in the bank and collect interest and for the rest of the year work and pay off our debts. THEN, next year we're going to start putting more money away and save for a house.
luckycouple05
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Re: wedding money- pay off debt vs downpayment
I would pay off the debt first. Whether you pay it now or later, its always going to be there until you get rid of it. IMO
jackieee
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Re: wedding money- pay off debt vs downpayment
Thank you all for your opinions. You make good points. DH and I talked more about it and are going to try to see a mortgage broker for advice as well. I think we are going to focus this year on paying off the debt and saving more for a house.
We've been looking at some houses too just to figure out what we want and where Wish we could buy now, but patience is a virtue, rightttttt
CarolAnn721
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Re: wedding money- pay off debt vs downpayment
DH and I are in a similar situation. We paid of half the debt and are the saving the rest. And we are adding slowly to the savings and paying the rest of the debt down slowly. I don't know if that is the right way, but it is working for us so far.
