Most American households are juggling multiple debts, according to one survey. It’s not easy to deal with multiple debts, and it worsens if the economy is on a downhill trend. You may be among those struggling with multiple debts and wondering how best to pay them off. One way you can make it a little easy on yourself is by bringing all your debts together.¹

This is called debt consolidation. Debt consolidation can help you manage your finances better, and if you can structure repayments strategically, help you save and pay off your debt faster. It works even for first-time homebuyers. The key is understanding how it works.  

Here Are Three Debt Consolidation Tips to Save On Your First Home

Here is all you need to know about getting financing for your first home when you already have multiple debts. 

Create a Practical Budget

For debt consolidation to work well, you need a clear plan. Creating a basic budget might not help you in the long run, and neither is cutting out all “unnecessary” expenses. A basic budget only allocated funds to basic spending, emergencies, and retirement kitty. This may not work well with debt consolidation.

To be successful in budgeting when trying to save for a home, you need to be more realistic and allocate funds for infrequent expenditure and leisure and fun. If you restrain your budget too much, the chances of breaking it are high, going back into the debt cycle. 

Stop Using Your Credit Cards

It’s advisable to quit using your cards when trying to consolidate debt. It may seem like you’ll be taking extreme measures, but experts believe it to be an effective way to stop accumulating debt. If you find this too hard to do, keep reminding yourself why you want to get out of debt.

However, not using your credit cards does not mean closing them. That can negatively impact your credit. Ensure to keep paying the nominal fee on your cards promptly and in full. 

Shop Wisely for Consolidation Products

There are two main ways for debt consolidation; credit card balance transfers and debt consolidation loans. Balance transfers allow you to move your credit balance from one card to another. They give you a limited interest-free offer period and attracts a transfer fee that varies from one provider to another.²

As for debt consolidation loans, they give a relatively lower interest rate compared to credit cards, meaning you can borrow higher amounts. However, the rates you get are determined by your credit history and the amount you owe. Pick a lender that pays money directly to your creditors to avoid the temptation of receiving the money and directing it elsewhere. 

Consider These Debt Consolidation Tips

When trying to save for your first home, having many debts can frustrate your plans significantly. However, debt consolidation can help you reduce your spending if you have a good repayment structure. Picking your debt consolidation plan also plays a role in how well you manage to pay your debts. 


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm) or visit our website @ A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore
CalPATH Division Manager”


Links to External Sources:

  1. Key Figures Behind America’s Consumer Debt:
  2. Everything you need to know about balance transfer fees: