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clearwaterrev t1_jdt69be wrote

Refinancing high interest debt into a lower interest rate personal loan should save you some money. I would worry less about the potential impact to your credit scores, and instead just focus on paying off your high interest debt and then saving up cash.

> when we go to purchase our first home (hopefully) next year.

Your timeline for buying may not be realistic if you have no savings at all right now. Make sure you are saving up enough cash for your down payment, an additional 3-4% for closing costs, and then a 3-6 month emergency fund on top of that. If you are aiming to buy a $200k home with a 5% down payment, just as an example, you'll need something like $26k in cash before buying.

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[deleted] OP t1_jdt7ut1 wrote

[deleted]

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Realistic-Produce-28 t1_jdt9iei wrote

Honestly, you should use what you have in savings to pay off the personal loan and credit card, then use what you would have paid towards those and pay off the car loan. Then replenish savings with the intention to be debt-free when you go to buy the house. Provided it’s the kind of savings you can take from without penalty.

At minimum, stop using credit cards.

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clearwaterrev t1_jdta0p7 wrote

If you have savings in an investment account, I would just pay off all of your high interest debt now.

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