12500 credit card debt and need to buy a house in six months

12500 credit card debt and need to buy a house in six months
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So I have 12500 dollars in credit card debt and I have 5000 dollars in my savings account . Tax returns should be coming soon so I expect my savings to be around ten thousand . My grand mother is selling her house that my family was raised in and I want to buy it . They want 200,000 for it . I have. 640 credit score right now. I’m torn between paying my credit card debt or savjng the money for down payment. I’m a first time home buyer also . Should I considered getting a loan for some of my credit card debt could I still get a morgage with getting a loan so close to the time of buying the house ? Please help !!!


$12,500 in credit card debt and $5000 in savings. What is the interest rate on the CC? It better be 0%, and what rate are you earning on your 5K? If the CC rate isn’t zero then this one seems like a no-brainer.

The credit card balance may not be an issue if your income is high enough for the mortgage and the CC debt. I would strongly advise against taking out any kind of loan if you are 6 months away from applying for a mortgage.

Best advice, go talk to your mortgage lender. They will tell you, based on your income and your debt, how much of a house you can qualify for. Once you have those figures you can then make a decision on what to do with your savings.


Thanks alot I make about 70,000 a year if that helps


Hi Christopher,
I agree with the above comment. Before you make any moves on the CC or personal loan talk to a mortgage lender. I use loandepot.com or quicken loans rather than a brick and mortar bank because online services will find you better rates.
They will tell you what you qualify for in your current state and will advise what changes will be necessary. $70K with only 5K in CC debt isn’t bad at all. But with 15K you will need that and more from your taxes for down payment closing cost and attorney fee. So keep saving make payments on time. And good luck