Pay off some debt or invest out of state?

[Larissa Luna]

Hello!

I'm wondering what would be the smartest thing to do with the 15k we have. We could either use it all to pay off some of our credit card debt to increase our credit scores and so that when do invest (we want to use the BRRRR strategy) we can do so without worrying too much about being declined for a refi because of our debt/scores.

We have about 24k total debt just in credit cards, so we'd have around 9k still after paying the 15k off.

Our goal is to invest out of state where it isn't so expensive, but now typing this out I'm not even sure if we could get a regular loan to purchase an out of state duplex with our down payment if our debt isn't lowered and credit scores aren't brought up? 

I guess I'm leaning toward using it to pay down debt but it would be nice to hear any opinions or maybe other ideas of what I could possibly do with it? Thanks!

[Brianne H.]

@Larissa Luna I would use it to pay down the credit card debt. Assuming regular CC rates of 20%+, the amount you'd be saving in interest every month might just be similar to the amount of cashflow you'd get from one or two doors. 

Again assuming high interest rates, can you transfer the balance to a line or credit or get a promotional rate of low interest? That might help keep the costs from escalating while you work on paying it down aggressively.