Part 4: Get Out Of Debt As Quickly As Possible ... So You Have
More Money To Buy Your New Home!

I know, when preparing to buy your new home money is real tight. But if you have any extra money – any at all – try to pay off as much debt as possible. This will help you:

• Be more likely to be approved for a mortgage

• Be able to borrow more money

• Have one (or more) less bill to worry about once you start having to pay a mortgage every month.

If you can’t pay off your debt, you might want to consider waiting before buying your new home. Or, look into a debt reduction program that can help you get out of debt faster.

There are several ways to pay off your debt quicker:

• Debt consolidation - a process where you combine (consolidate) your credit card bills into one monthly payment, and lower your interest rate considerably.

• Debt settlement - a process of negotiating with your creditors to pay off your balance at a reduced amount, often saving you 40-60%. This is a more aggressive approach than debt consolidation, and is not right for everyone - but it does help you get out of debt much faster.

• Put more money towards your debt and less towards "luxuries" or extras (it's a amazing how much money you can save when you are committed to getting out of debt faster!)

• Borrow money from a family member (be careful with this one, as it can backfire on you!)

• Get a part-time job or start your own business - if money is tight, you may already be working as hard as possible. But sometimes the best solution is simply to make more money.

There are no rules that say you can’t have some debt and still buy a house!

But think very carefully about your financial situation. And TRY to pay off as much debt as possible before buying a house. There is enough to worry about as a new homeowner, without having to worry about paying your credit card bills.

Here is more information on debt settlement and debt consolidation:

Debt reduction tips

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At the very least, if you do have any debt, MAKE SURE you can comfortably afford to pay your credit card bills as well as your mortgage, before getting started.

That’s all for today.

Happy house hunting,

Kris Bickell
House Buying Tips

NEXT: Find out how much house you can really afford!