I meet with a lot of homebuyers, many of them quite young, who want to buy a home. Problem is, they are not ready to buy because of their credit card debt. Things happen in life. Paying for college, health issues, loss of a job – all these things are reasons why some of us have credit card debt. What should you do if you want to buy a house but need to take care of some old credit card debt.
Clark Howard, a consumer reporter on Headline News and on WSB Radio (nationaly syndicated or available live streaming on the INTERNET) has a plan for you.
Check out Clark’s advice about paying off credit card bills:
1. Pay off the highest interest rate card first.
2. Pay more toward one card and then keep other cards current
3. Make separate payments every 14 months
4. For help during the process, contact the National Foundation for Credit Counsling at NFCC.org or call 800-388-2227.
Clark Howard has done more to help people wih their finances than anyone else I know. I also highly recommend Dave Ramsey’s Financial Peace workshop. Go to his website and find where one is being offered near you. My church is doing one right now but it is full and classes have already begun. You will learn how to budget and plan for your future.