Nigel's solution sounds like a great idea, I was thinking the same thing myself. If you are looking to buy a home anyway, why not allow the government's incentive to pay off your high interest debts. Think about getting rid of the credit cards for a while after you purchase the home or freeze those suckers in a block of ice so you only use them for an emergency. Owning a home is a big responsibility, once your debt from the credit cards are paid off, I would budget to continue making the payments that you had been spending on credit card debt to be paid to a savings account. That way you can build up reserves for any unexpected home maintenance items and/or cash reserves for anything unexpected.

Without seeing your credit report this is a difficult question to answer. If there is a chance for you to obtain a mortgage in 2 - 3 years, there are people that will sell you a home on contract. If you are a first time buyer and act quickly, there is up to $8000 available as a tax credit which many sellers will accept as a downpayment. Contact me directly - I will talk you through your options and hook you up with a very honest and good contract seller in Des Moines. You can also get some tax credit info from my website http://www.8000dollars.com

Nigel Chapman

nigel@RealEstateConcepts.net

Managing Partner
RE/MAX Real Estate Concepts,
550 36th Ave SW, Ste BB
Altoona, IA 50009
Licensed to sell real estate in Iowa.