You have gotten some good advice on reducing high credit card debt. I would do whatever you can to free up cash to satisfy the closed account and continue to work away at that high credit card debt. Consider selling whatever you are not using, putting your cable on hold, save a $1 or two where ever you can. Have a garage sell. Pick up odd jobs, etc. You will be surprised at how much all of these little things can help. Some cards will let you go online and pay a small amount each day. Most people nickel and dime their way into credit card debt. Nickel and diming can help to pull you out.
Best wishes on buying your home.
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