Money often makes my head a splode….
So my husband and I are buying a house (YAY!). As it is a bank-owned foreclosure, it needs some work. Not a ton, as it is one of the better ones we saw. But it needs new carpet, light fixtures, and a range and fridge to make it livable. There is lots of work that we want to do but we will obviously be able to spread that over time. We were advised by several mortgage professionals and Realtors that, until we closed on a house, the best thing to do was to sit on our credit card debt and put all our extra money into savings in order to accumulate as much cash as possible. This made sense to us, and we're planning on, once we get into the house, aggressively paying down our credit cards with all the money that has been funneled into the savings account over the last few months (about $450-$500 a month after you account for the adjustments in a slightly higher housing payment plus a couple of utilities we don't have now). But as our down payment is going to be far less than we anticipated and the seller is going to pay our closing costs, the current question begs whether we should make a large payment to the credit cards once we get into the house to get our balances down a little more or if it would be better to put that cash towards the work we'll have to be doing (instead of probably financing all or part of the work that needs to go into the house--mostly the carpet, as my dad owns a hardware/lumber business and has promised us assistance on all that other stuff we need). I've tried to write this all out and look at it and see which route makes the most sense, but after a bit my head just starts to swim and I'm not sure what's better to do. I can provide more specific details if necessary, but didn't want to tl;dr this any more than I already have. ;) Thanks so much for any advice!