We want to build a house, I have $20,000 in debt, wife has $10,000. I have an extra $20,000 to pay off debt.?

Question

We want to build a house, I have $20,000 in debt, wife has $10,000. I have an extra $20,000 to pay off debt. If I pay off all my debt and not my wifes my scores would go from 660 to 730 or so. If we pay off $10,000 of my wifes and $10,000 of mine both our scores would be roughly 700. Which is the better choice, pay off all my debt or 1/2 of my debt and all my wifes debt.

Answer 1

Are you both going to be on the loan?  If so, I'm not sure it really matters.  I'd pay off the ones with the highest interest rates so I could get out of debt faster or the one with the highest payment to help out your monthly cash flow.

Answer 2

i'd pay off all the wife's since hers is less and she'd be out of debt which is very good and i'd pay half of my own.

you both would have nice scores,so i don't see the reason to pay off all of yours and leave her in the dust.you can also pay off like 15000.00 of yours and 5000.00 of hers which is not bad either.

good luck!

Answer 3

The higher your credit score is the easier it will be to buy a home. Just be ready for it. Dot all I and cross all T's. Good luck, it is wonderful to buy a home and stop making other owners richer by paying off theirs.  Jk

Answer 4

1st of all, pay down your credit cards that you are over 50% of your credit limit, then pay off the higher interest rate ones. That is exactly how I would pay them off. Both of your credit should be fine.