Pay off the debt first. Always pay the known before you pay the unknown. In other words, you know you owe this debt so why risk your money elsewhere as you may lose it. Then you'll still owe the debt and not have the $$ to pay it.
Also if you are paying 8% interest on the debt, where can you make more than 8% on your money that is guaranteed?
2007-01-05 05:36:54
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answer #1
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answered by capnemo 5
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Live on a written budget, spend less than you make, sell stuff, get an extra job or two. Also, before purchasing a home, make sure you have money in the bank. Most people don't realize how expensive it is to maintain a home. Many first time homeowners focus on the monthly payments and not the additional expenses. Ensure that you understand property taxes, homeowners insurance, increase in utilties, maintenance, etc. before buying a home. Also, you may need to purchase appliances, window treatments, paint, etc. Save at least $1,000 in the bank for emergencies before purchasing a home. Otherwise, you'll use a credit card when unexpected events happen. Scott........
2016-05-23 06:15:46
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answer #2
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answered by Anonymous
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I guess it all depends on how long the debt has been sitting there for and also the last thing you want are creditors coming after you asking for all of the money at once! How often do you usually make a payment towards the debt? I would personally WANT to invest but in this case you are just a lot safer putting the 20,000 to your problem.
2007-01-05 05:38:21
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answer #3
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answered by Anonymous
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Pay the debt! If there was any certain way to double your money we would all do so! Get a couple of extra jobs and clear the 5000 too?
2007-01-05 05:39:52
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answer #4
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answered by Davy B 6
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It will take so long to double your money, so go ahead and pay off your debt. And if you don't accrue anymore then every dollar you bring in can go straight to you or savings. That way you can save up to put a huge down payment on a house for lower payments, or save up to pay for a brand new car with cash. Then you won't have a car payment that you're paying all this extra money towards interest.
2007-01-05 05:37:40
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answer #5
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answered by #1 Buckeye Fan!!!! 4
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I agree with everyone saying to pay the debt first. Also, you need to figure out why you got into such debt, and how you're going to avoid debt in the future. Otherwise, you'll just keep doing the same thing and never getting anywhere.
I suggest you read The Millionaire Next Door. It will change your life!
2007-01-05 06:56:34
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answer #6
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answered by Katherine W 7
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pay the debt, if you have 5000 still owing it will be easier to pay off in installments as you go along. If you try doubling it, it could all go wrong and end up in more debt which will be even harder to clear. Even if you pay your debt off and are skint, at least you can sleep at night not having to worry about money troubles.
2007-01-05 05:39:52
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answer #7
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answered by zeldieuk2002 5
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assess the rate of interest on your loan vs the rate of interest you could earn on the money in a year. If the former outweighs the latter you should get at least the majority of the debt cleared straight away rather than investing. decide what you're gonna do before you get that money though, because if you delay you'll soon spend a good proportion of it on "a little luxury here and there" and have squandered the privilege of getting a life-line.
2007-01-05 05:37:54
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answer #8
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answered by mookvey 3
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follow the 10/20/70 rule here.....10% goes into a long term investment (mutual funds, stcoks, bonds, CD's) account for your retirement, 20% percent goes into a high interest bearing savings account or short term CD as an emergency reserve and 70% goes to pay off part of the $25k debt.......make sure you pay off the debt bearing the highest interest rates first
2007-01-05 06:11:33
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answer #9
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answered by boston857 5
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Pay off the debt, you will sleep better and be able to make more money to pay off the rest.
Stress can take a lot out of you. Make the smart play, pay it off.
2007-01-05 06:12:03
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answer #10
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answered by MR MONEY 3
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