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Phyduex2000 t1_jdt7mfz wrote

Reply to comment by Effective_Inside2962 in Preparing to buy our first home by [deleted]

Just a promotion at the job I have been with for 8+ years. I am a General Manager at a restaurant making 68k base.

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LonelyDraw5778 t1_jdtabnp wrote

Congrats on the promotion; forget about another loan with your current score and put all the extra money into the personal loan, then the credit card, then the car.

Once you are out of debt put all that money you were spending to pay it off into short term savings and use that for the house when it is time.

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Phyduex2000 t1_jdtarkq wrote

That was what we were initally planning on doing I just wasnt sure if doing it this way would be better. Appreciate it!

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firefly20200 t1_jdtc7ge wrote

Your take home is what, at least $3k/month.

Can you pay $1,000 a month right now towards debt if you eat rice and ramen for a few months? (IE cut bills way down).

If so get that 26% loan paid off in three or four months. Then go after the credit card hard core. The car... eh, it's a bad time for loans right now. You'll probably look at 8%+ even with good credit for an unsecured personal loan and that doesn't really save much on the car. Maybe check local credit unions on refinancing the car rate, but used auto rates probably aren't much better, maybe 6 or 7% if you get lucky.

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Phyduex2000 t1_jdtdf5j wrote

Take home for me is $4,120 and for the wife is 2-3k (she is a server) we are putting an extra 1200 or so each month toward the debt.

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Effective_Inside2962 t1_jdtdgqb wrote

Nice! Congrats! Banks look at monthly minimum payment on debt you are paying on when it comes to figuring out your loan amount. The lower your minimum payments are, the more mortgage you can afford in their eyes. I would suggest going the route that will save interest and lower your total minimum monthly payout. Also, ask about the possibility of paying points to help lower your rate when you look into securing a loan.

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