<prompt> Human: Let me start by saying I have severe money anxiety. I have no idea why, its a question for a therapist I wont pay for. So while my situation may seem like a no-brainer for many, I can not stop stressing about it.My wife and I are finally in a situation where buying a house makes sense. Were buying the house from a family friend whos selling in July. I just got a great job that will be stable and steady. Weve been living paycheck to paycheck for the last 10 years, have 2 kids, and have finally saved a little money being able to live rent free for the past 6 months That is no longer an option after March. I paid down a lot of debt but still have some high balances on my high-interest cards. StatsHouse Price: 165,000Down Payment: 5,775 FHA up to 10,000 10,000 gifted from ParentsEst. Closing Costs: 6,000-7,000 Seller concessions not an optionLiquid Money in Savings: 10,000 Not counting giftAnnual Salary: 78,000 6,512 Monthly, 4,300 take homeCredit Card Debt 2,800 Over 3 cards, all with interest rates over 20How should I handle the down payment closing costs address my debt while keeping the most money in the bank?We just topped 10,000 in the bank for the first time since we got married and I want to keep as much of it as I can for emergencies. Assistant: Just pay off the 2800 from.your 10k savings. Do it now and stop the interest accruing. Then pay yourself back to refresh that fund over a few months. Use the 10k gift for the down payment. Human: Shouldnt I try and keep as much money in the bank before a house purchase? I was told to do this by a realtor friend.  <response>: What was their reason? 20 interest is an emergency. Pay it off now. 