Seeking serious money advice. Is down payment on home and paying off debt the best options?
2007-01-21 06:03:27 · 7 answers · asked by DaddyBoy 4 in Business & Finance ➔ Personal Finance
Paying down debt is always a good idea but also if you are looking at buying a home it is instant equity, go over your personal financial situation and make the appropriate decision based on your personal needs. Congrats on the winfall.
2007-01-21 06:12:49 · answer #1 · answered by pslbud 2 · 0⤊ 0⤋
Congrats on the cash windfall! Depending on the circumstances, the tax man may want a piece of it, too, so keep some set in reserve whatever you decide.
We're always going to have debt in life, so a better question to ask is "how am I managing my debt?"
If putting it towards a a debt obligation (credit card, loan, mortgage, bookie, etc) makes you manage your debt easier, than choose that course of action.
If putting it towards a debt obligation is going to have no significant impact, then put it into savings or invest it in some bonds or stock market. The lottery and gambling is not an investment!
Good luck and congrats again!
2007-01-21 06:55:21 · answer #2 · answered by Mike 1 · 0⤊ 0⤋
Absolutely. If you are in the market for a home, then using it for a down payment is definitely a good place to invest the money. If you have some outstanding debts that paying them off would help increase your cash flow, then paying off the outstanding debts is another good place to put the money.
2007-01-21 06:12:48 · answer #3 · answered by ? 7 · 0⤊ 0⤋
I would invest it in something very low-risk and secure and just forget it about it for 10 or 15 yrs. Nowadays, 15,000 isn't going to solve very many debt problems nor is it a large enough down payment for a home. You could still consolidate your debt loans and continue to save for a down payment for your house while maintaining that nest egg and making a ten yr. plan as to what you will be doing with it.
2007-01-21 06:20:35 · answer #4 · answered by flacocajuncujo 4 · 0⤊ 0⤋
If you have any debts, pay them off first. Then learn about how to further manage you money by going to your local library and checking out books like All Your Worth by Elizabeth Warren and Personal Finance for Dummies (both recommended by Consumer Reports).
2007-01-21 06:32:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It really depends on your situation. If you are planning on getting a home, then the down paymet would be nice. But if you've got a large amount of debt, wait on the home and pay off the debt so you stop accruing interest on top of it.
2007-01-21 06:12:56 · answer #6 · answered by KIDD3422 3 · 0⤊ 0⤋
When my husband and I came into some money, one of the first things we did was paid off the car and the credit cards.
Because we did those things, we were able to buy a house later.
2007-01-21 06:12:45 · answer #7 · answered by Meg M 5 · 0⤊ 0⤋