We are in the process of closing on a home loan. We used USAA's debt manager tool to prioritize our debts to the most efficiency. For saving money we would normally pay on interest for those debts. We like most have fallen weak and used credit because it was easy. We didn't save for our purchases but charged instead. We have paid off almost all of our credit card debt. Started an emergency fund. And have all our closings cost plus extra in an account for closing day. I am wondering if I should continue to pay down on debt? We are on the high side with our debt to income ratio still. This worries me. And renting is out of the question as its so inflated because of the oil field boom. Rentals are so over priced.


If you are going to pay less on a mortgage payment than you would for rent then I would say good job. However, don't forget the other expenses that do come along with owning a home rather than renting. You may be in more for a shock than you know. Now not to discourage you, I would definitely repay all minimum payments needed to stay afloat. Best thing you can do is start saving some a little money for a small emergency fund. Maybe 3000 to 5000 to be safe. If you use the Emergency Fund you better rebuild it before you attack tthe debt again. That's why I said a small one, not the one you will need after you get out of debt that holds what most would say 3 to 6 months of expenses. I honestly say with this economy better save 12 months. Definitely take a look at your budget and see where you can cut some expenses and apply a little more towards your credit card debt. You can make your coffee at home instead of Starbucks. I suggest using either the debt snowball or debt avalanche method. Google those terms and see which fits best for your situation. If you can pay the minimums on all debt and pay extra on the highest interest rate. Then once one is paid off apply that payment plus your minimum payment to the next one on the list. Before you know it, you will be making large payments and you will be crushing your debt. The key is do not go into more debt and live like you are still in college. Maybe not to the extreme of eating cup-o-noodles and etc, but make financially smart decisions. I hope your home loan has a low fixed rate with a 10, 15, 20, 30 year term. Once you have used a method for paying off the credit card debt, I suggest you pay more on your home loan. You will pay it off quicker and pay less interest. Congrats on your home. Good luck. 

Pay your debts and then stop being a debtor. Debt is slavery and you'll never get ahead by being someone's else's slave.