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Ask Dave

Buy House Debt Free?

Caroline asks if it's okay to rent until they're debt free.

QUESTION: Caroline makes $60,000 a year and wants to buy a $100,000 home. They are starting to build their savings and have $11,000 in debt, but buying a home would empty their savings. Should they rent until they are debt free?

ANSWER: Absolutely...but it won’t be as long as you think.  You be able to knock that $11,000 out fast.  Getting debt free first will make house shopping a lot less stressful too.