Meet Nicole the 2nd (not to be confused with Ep. 12 Nicole)
Age: 25
Salary: N/A
Nicole’s main concerns, in her own words:
We have a little less than $40k in debt between our two auto loans, a personal loan ($8500), a credit card ($2000 @ 0% until paid) and student loans. The student loans have the highest interest at 6.8%, the rest is below 3.5% (We scored a great rate on consolidating old debt.) We’re on track to be out of debt in two years.
My husband has almost $30k in a 401k from a former employer. I have almost $2k in a 401k that I started this year. I’m now contributing 5% of my income and receiving a 4% match from my company. My husband just set up the same (we work together now). We have about $7500 in liquid cash savings.
We’re renting from family for $1000/mo but are eager to get into our own home. We don’t know if we should buy a smaller home now to take advantage of great rates, or wait until our debt is paid off and we can afford a more comfortable home. We’d love your advice!
What we cover on the episode:
- To buy a house or continue renting?
- Is too much of their household income going to rent?
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Peter Dunn a.k.a. Pete the Planner® is an award-winning financial mind and a former comedian. He’s a USA TODAY columnist, author of ten books, and is the host of the popular radio show and podcast, The Pete the Planner Show. Pete is considered one of the foremost experts on financial wellness in the world, but he’s just as likely to talk your ear off about bass fishing.