Move About Low Interest Student Credit Card Problem ?

Q: I'm a 30 year old guy who is trying to figure out his next financial move and I need some sound advice. I've been in a full-time job for the last 10 years and even though I've made over $750,000 in this period, I have NEXT TO NOTHING to show for it. (Ain't that scary!) There is a small bright spot: I have very little debt, outside of student loans. Here is a summary of my debt: ---------------------------------------------------------------------- A Lowe's no-interest-until-2006 credit card that is almost paid off ($750 remaining; I usually pay $250/mo on this) $3000 remaining debt to the IRS with $200 monthly payments (I severely misjudged my withholdings for my last year of gangbuster income, 2001), 5% interest A $750 very-low-interest student loan with $50 monthly payments A $20,800 very-low-interest student loan with $200 monthly payments TOTAL DEBT: $25,300 more or less ---------------------------------------------------------------------- As for income, I've left the big bucks corporate world and I now make about $40,000/yr. My take-home is roughly $2600/month. Here's my dilemma: I'm currently living in a $900/mo 2br apartment. I know damned well that I am throwing money down the toilet by living here. On top of that, I'm absolutely fed up with the "apartment lifestyle". I want to buy a house when my lease runs out in October. But, I'm not sure what my next move is. Do I: a) Focus on paying Lowes and the IRS off by October and try and buy a house with no (or little) money down? b) Pay off Lowes and the IRS and then move into a cheap ($500/mo) apartment in October and proceed to pay down my student loans while saving for a larger down payment on the house?

A: - If you have no money saved, you're going to find it very hard to buy a house. Besides needing money for the down payment, there are closing costs, you'll almost certainly want to have some cash to spend on furnishings and random things you need f

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