If you saved 10k to buy a rental property soon but also owe 12k on a credit card, would you keep the 10k in savings for the property or put it toward the credit card debt?
I would pay off the credit card AS FAST AS YOU CAN. Then begin rebuilding your savings for a down payment.
Assuming you already have a 3–6 month emergency fund as well. If not, push off buying the rental for a while. Get the card cleaned up. Get your savings up. Then begin saving for a down payment.
Honestly, stash 1k as a starter emergency fund and throw the rest at the debt. Paying interest is just silly. You’re nowhere near ready to buy a rental.
1. Kill the debt asap.
2. Build a 6–12 month emergency fund in a HYSA.
3. Put 15% of income into retirement accounts.
4. Start a sinking fund for buying a rental.
Clear away the debt, and then with all your heart save your regular contribution PLUS the payment you were making toward your credit card, letting it all flow toward your down payment.
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