When you carry high-interest consumer debt (e.g., credit cards) while also aiming for a down payment, a typical, sensible priority is to pay down the high-interest debt first while retaining a small emergency fund. High-interest debt compounds against you and often costs more over time than conservative savings returns, so reducing that burden improves cash flow and lowers financial risk. Maintaining a modest emergency buffer while paying down debt prevents you from re-borrowing at high rates if an unexpected cost arises. This combined approach balances the urgent need to reduce expensive liabilities with the protection that liquidity provides.

Execution tactics include the debt avalanche (pay the highest-rate debt first) or debt snowball (pay smallest balances first to get momentum) depending on whether you favor mathematical efficiency or behavioral wins. Redirect extra cashflow freed by debt payoff into a dedicated down-payment account once high-rate debts are under control. Also negotiate lower rates, consider balance transfers with 0% promotional APRs (with careful repayment plans), or consolidate if it reduces the weighted interest rate. The key is to avoid trading one high-cost obligation for another or assuming speculative investment gains will outpace guaranteed interest on debt — in most cases, reducing high-rate debt is the highest-return move.