What to Pay?

My husband and I are looking to buy a house early next year. First, we are going to pay off all our debts..obviously...

So should we focus on our truck payment, we have financed through FMC or should we pay off all the little odds and ends?

The truck being paid off will probably get more respect on your credit rating, assuming the odds & ends don't total more than the truck. :)

Pay off all the odds and ends, then focus on the truck.

I would do the odds and ends first then pay off the truck. I think "uncluttering" your financial life is a good thing.

My recommendation is to google "debt and house buying" or something similar to get solid advice. However, my advice would depend on your current credit rating. If you don't know it, you should find it out. Your realtor should run it for you for free as part of the pre-approval process. Assuming you have a good rating and your debts are not currently substantial, I'd save some of your free cash for use on your down-payment. If you can afford to put down 20% of the mortgage, you will save what is know as PMI insurance...this is a charge that can cost you significantly.

Again, there are many more factors to consider (ie. do you have a good rate on the truck?), so check out a web site or a local bookstore for a brief summary of factors to consider.

Good luck!

Pay off the highest interest rate first. Otherwise time is your enemy. Put all the money you can on the highest while paying minimums on the rest and when it is paid off go on to the next. Good Luck.

First thing to do is contact a lender. Preferably a mortgage broker. Sit down with them and get advice on your situation. If all the odds and ends as you call them will hinder your ability to have enough for a down payment, then what good does it do to pay them off. On the other hand, if the truck loan payment is so large that you won't qualify for a loan, then you should pay that off. Remember, that for every $1000 you put onto the down payment, it will only reduce your monthly payment by around 5 or six dollars a month assuming 6.5% aannually divided by 12. And why early next year. Tax wise, it would be good to do it this year, but check with a real estate agent who knows the neighborhood.

Pay off the odds and ends as quickly as possible while staying current on the truck payments.