2006-11-19 00:03:58 · 9 answers · asked by NeedAdvice? 1 in Business & Finance ➔ Personal Finance
NO
Pay off some of the credit card debt
2006-11-19 00:06:19 · answer #1 · answered by Anonymous · 1⤊ 2⤋
Perhaps you should look at it this way::
Without any question, you will be paying 6% on 32k until that loan is paid off. Since it is credit card debt, the rate may be variable (i.e., it may go higher). Your 16k is called "savings." If you are saving for a specific purpose, you may not want to put the money at risk in the stock market. It is all but a certainty that your savings are not earning 6%, but if you use all or part of that money to pay off a portion of your debt, it will be the equivalent of earning 6% on those funds. In my opinion, the way to find an investment that will return more than the 6% you are paying in interest is not to put your savings at risk in the stock market. You are understandably looking for a kind of short cut to get out of debt, but you may do nothing more than put yourself in an even worse situation. Pay off the debt, and leave the risks of the stock market to someone else.
2006-11-19 00:35:03 · answer #2 · answered by jerrold 3 · 0⤊ 0⤋
That depends. Right now, you have very low rates on your credit cards, paying off part of them will not reduce your rates. The stock market (mutual funds) average over 5 years a little over 8% return. If you have a good job where you can make more than the mininum payments on your credit cards, I believe I would invest my 16 k in a good mutual fund and stop buying anything but necessarties to pay my cards down. You would have the 16k plus any interest it might make for an emergency fund. Believe me, everyone should have an emergency fund. If you do not take my advise on mutual fund, at least keep $6,000.00 back as an emergency fund.
2006-11-19 00:18:34 · answer #3 · answered by bettyswestbrook 4 · 0⤊ 0⤋
Invest in yourself before you invest in stock. Reduce your credit card debt first. Even if you get 8% growth out of the market with your 16k, the 6% intrest on the 32k will cost more than you make in stocks because intrest on the higher amount compounds faster than on the lower amount.
2006-11-19 13:46:16 · answer #4 · answered by chocaholic 2 · 0⤊ 0⤋
Get rid of the credit cards,32k in debt that's crazy.Stop being a slave to the banks and pay them off.
2006-11-19 00:53:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
NOt before getting that credit card debt down.
2006-11-19 00:10:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No I would have 17k in credit card sebt and 1k in savings.
When you play with snakes long enough you will get bitten.
Cut up the cards
2006-11-19 00:14:08 · answer #7 · answered by steve w 1 · 0⤊ 0⤋
only when the stock market falls, it is on the up now,
2006-11-19 01:49:47 · answer #8 · answered by chp 2 · 0⤊ 0⤋
i'll as i have confidence in stock market
2006-11-19 00:52:27 · answer #9 · answered by fans 1 · 0⤊ 0⤋