or would you put it in an investment fund and let it build up THEN pay off your debt? Or would you just spend it?
2006-11-13 11:18:22 · 12 answers · asked by ? 5 in Business & Finance ➔ Personal Finance
you should look at the APR (annual percentage rate) of your debts. remember that when you only make minimum payments, you are paying the interest upon interest. even if you pay more than minimum, you are still doing the same thing.
i do not know of any investment fund for $50k that you will make more interest on than what you are paying out for your debts. most credit cards are charging 20% (one fifth of the principal balance) or more every year.
here is what i'd do: i would take a portion of the $50k, pay down my debts or eliminate them, then take about $30-$40k and buy myself a place to live in. real estate increases in value (and it is a buyer's market now, so you stand to really be able to get yourself a good deal--hold it until the 2nd year of the next seller's market, at least that long) far faster than most investment funds. but know one thing: real estate is not a liquid investment. i.e., it is not too easy to sell quickly, for when you need money quickly. for that, a money market fund at your bank, for a small amount of the $50k, may be a good idea too.
2006-11-13 11:31:02 · answer #1 · answered by Louiegirl_Chicago 5 · 0⤊ 1⤋
I'd invest and try to at least match the return on the investment with the interest on the debt. The best would be to get a higher return and then make money while paying off the debts.
2006-11-13 20:33:53 · answer #2 · answered by Gabaos 2 · 0⤊ 0⤋
I would pay off anything with a high interest, because that would save me more money than I could earn in any account in a bank.
I would put some into a high-interest CD, to have for the future.
I would put some into a regular savings account, so that I would have a cushion... so I wouldn't have to charge purchases any more.
If I had a low interest mortgage, I would NOT use it to pay that off, because that expense can be deducted from my income taxes at the end of the year, so it saves me tax dollars.
I would probably spend a small amount of it to enjoy the fun of having won the money... but I'd be careful not to take that too far. I would NOT buy a new car with it, because new cars are the most overpriced commodity on the market.
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2006-11-13 19:27:14 · answer #3 · answered by mia2kl2002 7 · 1⤊ 0⤋
I would pay off some of my debts, spend a little on something nice, and save the rest.
2006-11-13 19:21:59 · answer #4 · answered by paulae67 1 · 0⤊ 0⤋
Pay off debts, buy a new car, then see what we could do for a down payment for our own home. Its nice to dream :0)
2006-11-13 19:27:02 · answer #5 · answered by sunniej1977 4 · 0⤊ 0⤋
Thats easy I would pay off all my debt and finally move on in my life.
2006-11-13 19:51:59 · answer #6 · answered by videotonyk81 2 · 0⤊ 0⤋
I dont have any debts I would buy a car and save the rest
2006-11-13 19:21:05 · answer #7 · answered by jaws65 5 · 0⤊ 0⤋
Save some and put some down on the mortgage. We have no other debt.
2006-11-13 19:22:13 · answer #8 · answered by Anonymous · 0⤊ 0⤋
measure the interest rates of your debt.....if its more than 5%,which is almost certain, pay it off. 5% is a very low rate of return on the safest of investments, you should do better than that.
2006-11-13 23:03:05 · answer #9 · answered by bush deathgrip 2 · 0⤊ 0⤋
I would put it in a fund and let it build up.
2006-11-13 19:26:04 · answer #10 · answered by Mariposa 7 · 0⤊ 0⤋