Don’t let post Christmas debt affect your home buying

One of the biggest mistakes that people make during the Holidays is getting into Christmas Debt and this debt can sometimes take the average person up to a year to pay off. It can also stop their plans to purchase a home in Orange County, new car, taking a vacation or all of the above.

If you have found yourself in the position of dealing with Christmas Debt, and you’ve been wondering if that debt will stop your plan to buy a home in Orange County in 2014, here’s a simple plan that you can follow to pay off that Christmas Debt and still accomplish your goal to buy a home next year.

Don’t Make the Minimum Payment  

Although it’s tempting to just pay the minimum payment on your credit card, you should make every effort to pay off as much as your debts as possible each month because, paying only the minimum payment means that those Christmas gifts that you purchased will ultimately cost you double compared to what you originally paid for them.

Consolidate Your Debt

Before applying for a mortgage loan, so you can purchase a home in Orange County, you should consider consolidating your credit cards or debts onto one card or loan if possible because, it will ultimately look better for your credit report if you have only one to two credit cards with balances compared to five or six credit cards that have multiple balances.

Pay Cash If Possible

In 2014 set a standard to pay cash for everything instead of using your credit cards or lines of credit because, cash payments will enable you to make progress paying down your debts and also it will look better for you if the credit bureaus can see that you’re making progress with paying off your debts each month, and staying debt free, instead of continually spending.

To learn more about how to stay fiscally sounds in 2014, or to view the latest Orange County Homes for Sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.