Buying a home is one of the most significant milestones in life. But for many people, managing existing debt while saving for a house can feel like walking a tightrope. The good news is—with the right plan—you can balance both without losing sleep or momentum.

1. Know What You Owe

Start by listing all your debts that still need to be paid, such as credit cards, student loans, car loans or personal loans. Note the balances, interest rates, monthly payments and every other aspect. This simple exercise helps you see the bigger picture and decide which debts to tackle first.

2. Prioritize High-Interest Debt

Focus on paying off high-interest debt first. Credit cards often carry rates above 20%, eating away at your income. Reducing these balances can improve your credit score and free up money for your house fund more quickly.

3. Automate Your Savings

Treat your home savings like a monthly bill. Automate a fixed amount from your paycheck to a separate savings account. This ensures you consistently save without the temptation to spend what’s left.

4. Adjust Your Lifestyle Temporarily

You don’t have to give up fun completely—but be mindful. Skip expensive subscriptions or frequent takeout. Small sacrifices today can speed up your path to owning a home tomorrow.

5. Improve Your Credit Score

Your credit score is essential for obtaining mortgage approval and determining interest rates. Pay bills on time, avoid maxing out credit cards and keep old accounts open. A better score could mean a lower mortgage rate later.

6. Explore Debt Consolidation

If you're feeling overwhelmed by managing multiple payments, consider taking out a personal loan or using a balance transfer card to consolidate your debt at a lower interest rate. Just ensure that this approach helps you pay off debt more quickly and doesn't lead to accumulating additional debt.

Managing debt and saving for a home isn’t about perfection; it’s about progress. With focus and discipline, you can lower what you owe while growing your savings. When you’re finally ready to apply for a mortgage, your financial habits will already set you up for success.