Many factors block young families hoping to purchase starter homes. The selling price and the interest rate are often out of the control of the prospective buyers. Yet there is one thing folks can do to prepare for homeownership: avoid debt!
If you use a credit card spend no more than the amount that you can pay off when the next statement arrives. Credit card interest is high, generally from 13% to 26% or more, and people can get trapped paying this high interest for months, even years.
This is important while Christmas shopping when many people rack up credit card debt. Such debt is like a huge lump of coal in your stocking. Use cash, a debit card, or checks. Stop shopping before running out of money. Bake cookies or tell folks your presents will arrive in January after everything’s on sale. If folks don’t understand that you’re preparing to buy a house they deserve a lump of coal.
