Credit card and car debt

[A. Maldonado]

Hello, I have about 7k in credit card debt and car payments that I’ll be paying for at least the next 5 years. 😔

My plan is to start RE investing before I retire from the army in the next 5 to 7 years but not before I pay off my credit card debt which I feel is a good plan.

My question is, should I also wait to pay off my car notes as well so I basically have no bad debt at all is is having a car loan manageable?

[Nick Gann]

@Ned Carey if possible I'd invest before paying off that CC debt. You could position yourself such that the investment property has enough equity that you could get a Heloc on the property and then refinance all your debt, car, cc, etc into a 30 year mortgage that a renter pays for. They key to successfully doing this is to stop doing whatever caused you to be carrying credit card debt. The caveat to credit card debt would be, it is a valuable resource when interest free for a time period, free money is excellent.

The message: if you buy right, you can restructure debt and have someone else paying for it.