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....

Re: wedding money- pay off debt vs downpayment

pay off the debt!

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.

Re: wedding money- pay off debt vs downpayment

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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.

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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.

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

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

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.

Re: wedding money- pay off debt vs downpayment

Pay off all your debt first.