Question

So I’m getting back a very little amount in taxes as I was mostly a 1099 contractor last year. My only debt is my car which is around $6900 left but I’m also hoping to buy a house by this summer. Should I apply it all towards my car debt or maybe split it between house savings and car debt? I’m also moving to a new state end of this month and am trying to decide on this same factor for extra income I’ll have since cost of living is lower. I can’t decide if I should just try to pay off my car ASAP or put more away for buying a home. I’m already over a year early with paying my car off with throwing extra money at the debt.  

Answer 1

I think I would, personally, save it for a house. Especially since you are already a year ahead on your car. But my priorities right now include saving for a house so I’m biased.  

Comments

@orts48 Thats my thought too. Bigger down payment for the house. I won’t have a ton extra every month but I should have “some” extra. Lol

Answer 2

Depends in your income and whether you qualify with that car payment. So i would split it for now, then once you move see a loan professional (or better yet find a first time homebuyers course in your new area) and see where you stand. They can run numbers for you.  

Comments

@saboteur I don’t think my car payment will effect it. It’s not that high and I make a decent income and receive child support. So my income is good. Especially for where I’ll be living.