Well here it goes,
My husband and i are soon to recieve a large sum of money.
Such a blessing after all i have been through. (car accident.)
We would like to own a home of our own instead of renting and paying someone else's mortgage off, but we are having trouble figuring which debt to clear.
We have a car that is currently leased, that we just started last year and has 4yrs left on the contract, to pay it out it would be roughly around $35,000 at the moment. This payout figure reduces every year by about $7,000.
We also have a personal loan which currently sits at $18,000.
We are havign trouble deciding wether we should pay off the 18k loan, or pay out the car lease, as the banks when applying for a home loan said we need to clear one off. The repayments for the lease is $800 a month and the personal loan is $240 a month. It would make sense to pay off the larger amount that is coming out of our income, (the lease) but as i said above, the payout figure reduces every year.
Do you think we should wait 4yrs until the car lease has finished and just keep paying it off over the 4yrs, and keep the rest of our money in an interest account, pay the personal loan out, then buy a home? Or pay off the personal loan apply for a house now and still pay the lease. So confused.
We would like to own a home of our own sooner rather than later, hubby thinks we should wait the 4yrs but i dont want to pay someone elses mortgage off when we could be paying our own...tricky one here! But any advice would be appreciated, lol :)
Oh and we live in Australia! ;)
Asked by Anonymous at 11:26 AM on May. 15, 2011 in Money & Work
Answer by CookieMom108 at 11:31 AM on May. 15, 2011
Answer by maybaby22 at 11:35 AM on May. 15, 2011
Answer by maybaby22 at 11:37 AM on May. 15, 2011
Answer by MrsLeftlane at 11:37 AM on May. 15, 2011
Answer by gemgem at 11:38 AM on May. 15, 2011
Answer by annabellelee at 11:42 AM on May. 15, 2011
Answer by Eviesmommy at 11:53 AM on May. 15, 2011
Answer by meooma at 12:35 PM on May. 15, 2011
Answer by whitepeppers at 1:31 PM on May. 15, 2011