I have three major credit cards with Chase that I’m really worried about — all with about $7,000. I have a school loan with about $6,000 and I own a time share (which I love) with about $20,000 left. Right now I feel the time share and my school loan are pretty good debt (whatever that means). My payments are on time and always more than what they are supposed to be. My Chase payments are $250 a month. My question is in another year my husband and I want to buy another home, so I’m trying to save $1,500 a month and pay down this debt.

First question is: Should I be more concerned about paying down debt than putting more money in the bank? (We are both 50 years old.)

Second question is: By the time I buy the home and I have leftover debt, can the debt be incorporated in the mortgage? What can I do with the debt?
Vera

Vera,

You need to get rid of the debt as soon as possible — there is no good debt. When you have debt hanging around, you invite Murphy to move in (if anything can go wrong it will) and he has a tendency to bring his cousins Broke, Desperate and Stupid. You certainly don’t want to move this crew to a new home. Just get crazy and knock out the debt. If your money wasn’t going to Chase and your school loans, you’d be able to save for the house a lot faster.

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