You do not need to pay credit card debt off beorfe saving for a house. In fact, you may not want to pay it off completely anyway. It doesn’t hurt your credit score (which will become important when applying for a mortgage) to have a couple of open lines of credit showing active use and on time payments.The thing is, you don’t want to have more than 25%-30% of the approved credit in use.On the other hand, if your credit card debt is at a high interest rate, it just might make sense to reduce it substantially beorfe starting your savings. The interest banks are paying on deposits is ridiculously low and, while savings are important, in fact critical for purchasing a home, it just does not make sense to pay high interest on credit card debt when you have the money in the bank that could pay it off. You’ll be losing money on a daily basis that way and it just doesn’t make good sense to do that.If you feel you must start saving, I suggest that you try to save $ 1 for every $ 4 beyond the minimum you pay on your credit cards.Hope this helps.
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