Pay off your highest interest rate debt first. After that, assuming you have excess, consider saving the equivalent of 6 months worth of income before starting to pay off your house.
An alternative would be to pay off the home equity loan (and credit card(s)) then start saving.
The point of paying off credit card debt is to reduce your interest expense. That’s just money you’re throwing away. You should then change your habits to not charge more on your cards than you can afford to pay off every month.
The point of not paying off your house right away and instead save is to give you a safety net against job loss. Yes, it wouldn’t be a bad idea ot pay off your house instead, but if you lose your job, the equity in your house does you no good. You need cash in the bank in that case, so savings is good.
Paying down home equity could be a good idea because if you lose your job you could potentially borrow that money back. That’s why I said you might want to go ahead and pay that down first before starting your savings plan.
By all means get rid of the credit card debt and change your habits to stop building it up.
Just make more debt mate. Buy a boxing ring on credit, I am sure you’ll have fun with it. If you lose your job you can complain like everyone else is doing.
I would pay off your credit card debt first. it probably has a higher interest rate than your equity line of credit.
Pay off your highest interest rate debt first. After that, assuming you have excess, consider saving the equivalent of 6 months worth of income before starting to pay off your house.
An alternative would be to pay off the home equity loan (and credit card(s)) then start saving.
The point of paying off credit card debt is to reduce your interest expense. That’s just money you’re throwing away. You should then change your habits to not charge more on your cards than you can afford to pay off every month.
The point of not paying off your house right away and instead save is to give you a safety net against job loss. Yes, it wouldn’t be a bad idea ot pay off your house instead, but if you lose your job, the equity in your house does you no good. You need cash in the bank in that case, so savings is good.
Paying down home equity could be a good idea because if you lose your job you could potentially borrow that money back. That’s why I said you might want to go ahead and pay that down first before starting your savings plan.
By all means get rid of the credit card debt and change your habits to stop building it up.
Always payoff credit cards first, get rid of them, and then create an emergency fund before worrying about paying off the house.
Just make more debt mate. Buy a boxing ring on credit, I am sure you’ll have fun with it. If you lose your job you can complain like everyone else is doing.