We currently live with a parent and have no mortgage payments. We pay moms monthly expenses as well as our own personal debt. Our credit is not very good and I personally have a line of credit (our only means of credit). It has been at the max 18,000 for the last three years. We make payments on it but always seem to dip into it. My question is should I give up my line of credit and turn it into a loan or just tighten up my belt and get serious. My husband and I would like to purchase a home one day and we both have great jobs. I do not understand how we can move forward and become debt free... We are both becoming quite stressed and are losing sleep. Please help.... We love your show and watch it always.

Nella, it's a funny thing about credit. Some forms demand that we pay them back, removing temptation. Others leave it up to us how much we pay off - providing you meet the minimum payment requirement. If you've been living with this line of credit for a long time and can't move the balance down, you may be one of those people who just shouldn't have revolving credit. Installment credit is more your ticket.

That being said, you also say you have lousy credit, so the interest rate offered to you on an installment loan may be more than you'd be willing to pay. The credit market is changing because of the economy and credit is getting more expensive for people who may default.

I'm going to tell you stick with the line, tighten your belt and get that sucker paid off, I don't care what it takes. To have it paid off in 3 years would cost you just over $500 a month. Since you're not paying a mortgage/rent, you should be able to swing at least that. I'd like to see you do three times that - yup, that's $1500 a month - and then, once you're debt is paid off, use $1,000 of that money every month to save for a downpayment on a home.

Let me know how you do.