Don't panic when you see how much you owe on your starting home. It gets paid off REALLY quickly. What you do is go around your town earning money. I explain how to do that in my other pages here in the walkthrough. I can easily earn around 2,000 bells at a shot through the various methods. It doesn't take too many of those rounds before your house is fully paid off.

Once you gather up some cash - say 5,000 bells - head over to the town hall. By the time you finish with the basic Tom Nook tasks you should know where that is. Go in and to the right booth, the one that says post office. Even though it's a post office it's also where you pay off your house debts. Explain that you want to pay the debt, and enter the amount to pay off. You don't have to wait until you have the full amount - just put in as much as you have.

Once you pay off the base house, you're able to get it expanded and larger! Of course you'll start up a new debt, but that's OK, that's how the game works.

Animal Crossing Wild World Walkthrough