2006-12-31 06:32:53 · 7 answers · asked by Zefram 2 in Business & Finance ➔ Personal Finance
depends on your taxable income level... if you reinvest like 401k you wont have to pay income tax on the amount , if you take it as income you pay taxes on the amount, but it might be less than the interest rate you are paying on credit cards for the year... and paying them off increases your cash flow per month to live on...got rid of a bill/s rite../?
2006-12-31 06:57:05 · answer #1 · answered by outformenotyou 2 · 0⤊ 1⤋
It depends on the tax rate you'll have to pay. If it's a lot more than the credit card rate... then look into maxing out a 401K, Roth IRA, etc.
If your tax rate is only 15-22%... you may want to pay off those credit cards!
2006-12-31 11:23:38 · answer #2 · answered by MovetoLatinAmerica 3 · 0⤊ 0⤋
No brainer.
Pay off credit cards. Doing this will give you a better no risk return than you might get elsewhere and will improve your credit rating.
2006-12-31 06:40:22 · answer #3 · answered by rkoblitz 6 · 1⤊ 0⤋
Use it to pay off debt. Investing is a good idea but if you are paying interest charges elsewhere then you have to calculate that into your gross losses. The best way to save money is to pay off old debt.
2006-12-31 06:40:58 · answer #4 · answered by Mocha_latta_ice 4 · 1⤊ 0⤋
If the interest on the credit cards is higher than the return you'll get on your investments, you may want to consider it.
2006-12-31 10:47:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pay off credit cards- they have a highter interest rate, then start to invest.
2006-12-31 06:41:07 · answer #6 · answered by northville 5 · 1⤊ 0⤋
Pay off the cards.
2006-12-31 06:40:36 · answer #7 · answered by critterlover17 2 · 1⤊ 0⤋