How Should I Best Use My Debt Consolidation Loan Money?

Question:

Dear Steve,

I just took out a debt consolidation loan, and I have a total of 7000 in credit card debt, a car note with 3700 still owed, and 5200 owed to IRS in back taxes.

I wanted to know how to spread the money around to increase my credit scores to buy a house. Thanks.

Monica

Answer:

Dear Monica,

You didn’t mention how much you received in the debt consolidation loan.

However, I would suggest talking to a local mortgage broker and discussing what will be the most effective way to apply the available funds since the end goal is to apply for a mortgage.

We know what the end goal is and the smart thing to do is talk to the broker and understand what will make the most sense for you rather than guess.

Sincerly,

You are not alone. I’m here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don’t give up.

Damon Day - Pro Debt Coach