Pay Off Credit Card Debt?

[aaauger]

FICO looks at how much of your credit limit is being consumed by a balance - on each card. To improve your credit rating, you need to pay off some of your credit card debt - but do it across your credit cards (i.e. don't pay one off). And opening another card will decrease your credit score because it increases your debt potential. And even when you open a card to move a balance to a better deal, FICO thinks you're having trouble paying down your debt. This latter point is odd because seeking the lowest interest rate is good debt management and getting the best deal is pure capitalism.

[FLPL75]

as a couple have said I would use some to get your ratio below 45%
I would also make sure I had a 6 month emergency fund. Then use the remaining to pay down some more debt.

if you are use to paying xxx for your mortgage and you rent would be xx put the difference towards getting the remaining debt cleared up.
once you have paid that off continue to pay the difference in rent as well as the payment you were making to your CC into a Money Market savings account you will find this will build into a nice down payment for the new house.

[SarahTel]

A couple of years back, me and my Husband were in around £18k of cc debt. We tried our very best to pay it back, but the interest & minimum payments just became too much. We ended up on a debt management plan, and 3 months ago we declared ourselves officially DEBT FREE!!! I know everyone is different, but you may want to look into debt management, as an option at least.

Ultimately, I would always pay the debt first & then look to invest after. whatever route you go down - I wish you all the best!

Sarah

[Oobie119]

We are currently renting and paying off CC. We don't have half of your debt but we are paying it off instead of putting the money in savings for a Down Payment. The interest and fees on a CC are killing you. Pay them off ASAP, it'll be great for your credit also. You may not even get a loan these days with that kind of debt..

[SPNARD1]

Pay down the debt and rent for a while!

renting right now and for the next 6-12 months isn't a bad thing....let's you time your entry into the Real Estate market...

Assuming for APR on the debt is over 8%...I'd just try to squash it...the savings on interest will be worth it.

Good Luck