Which do you think is better for my goal to buy a home?

If the interest that you are paying for the credit is more then the interest you are earning then it is better to pay down the credit. It will help raise your credit rating, giving you a lower interest when you do buy. Once you are not paying so much in interest on your CC then you can start slowly saving. Much better in the long run

Paying Off The Bills Unfortunately Doesn't Really Help Your Credit....It Just Looks Better. So I Would Keep The Money And And Pay Them Over A Period Of Time.

Consult with a mortgage professional that specializes in bad credit loans. Be honest with them about how much money you have to work with and your goals. What's more important to you, paying off those bills or getting a house?

If you have a large enough down payment, you may qualify for a loan without paying anything off.

You didn't mention exactly what you need to pay off. If they are old collections and charge offs, they may not be impacting your credit score as much as you think. The solution may lie in establishing new, positive credit to balance out the older, negative items.

Each situation is unique. That's why it's important to get the help of a trusted professional. No one on Yahoo answers or anywhere else can give you accurate advice without seeing the whole picture (your credit report, how much money you have to work with, your monthly bills and your monthly income.)

If you're buying a home in the state of Ohio, I'd be happy to help you out. I'm a licensed loan officer.

Pay off bills over a period of time, as it will help with your credit... its shows consistency.

Then keep saving the rest for down payment, interest will increase on money.

Beleive it or not you might be able to get a home loan at a local bank. A small bank that has under 20 locations. You dont have to be a member of the bank to get the home loan either. But if you still cant i would go with thd down payment because if you need a house thats more importandt the some bill. Except of course a CAR PAYMENT if you have a car payment i recomend you pay that off first.

I would check all credit cards and create a log and spreadsheet.

1. List all your debt

2. List your total due on each debt.

3. List the amount of interest paid per debt.

4. Now take the card with the most debt and pay the maximum you can.

5. Pay the minimum on the lowest interest rate.

6. Do not creat ANY new debt.

7. Meet with a mortgage broker and see what you can afford with your current debt load.

8. Take your information and then determine if you should take partial amount of savings to reduce your debt, this will increase your amount of loan.

9. This will give you a good base line on your future plans.

Good luck!

If you have credit card debt, take that money stashed and put it towards your debt. That will help get your credit score up.

Then you can take what you were paying and put it towards a down payment.

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Depending on how much money you have the best thing to do is catch up your bills and then pay the remaining balances on time. this will build your credit score and make it easier to get a loan in the future

If you have the money to start knocking down those bills as soon as possible, that is the best way to go.

after you straighten out your credit rating, remember this, debt is easy to get into but hard to get out of..

You seem to be thinking the problem out, I believe either way that if you stick to whatever plan you choose you will make it, just don't start one way and change your mind after- wards.

stick to your guns.

Check your interest rates and pay off the highest percentage rate creditors first. Also pay any outstanding bills first because your debts are compounding with late accounts. Good Luck!