Dear Dave,
I’m thinking more seriously about buying a home in the next year or so. It seems like the housing market has cooled off a bit, so I am also planning to get a secured credit card to help me rebuild my credit score in the meantime. I make $60,000 a year, and I have about $15,000 in debt and $3,100 in savings. Is this a good idea and a good start toward getting my credit back on track and taking control of my finances?
—Martin
Your income is your most powerful wealth-building tool.(RetroClipArt/Shutterstock)
Dear Martin,
In a word, no. I want you to become debt-free before you buy a home. I also want you to have an emergency fund of three to six months of expenses set aside, and have a down payment—preferably of at least 20 percent, so you can avoid having to pay private mortgage insurance—before buying a home….