What should we do with a $50.000 inheritance, pay off our credit debt, or invest, or buy a house?

Answer 1

Pay off your debt.

Answer 2

Debt first. It's silly to buy a house if you are still paying on things that you dont even know what you bought (credit cards).

Then use the remaining for a down payment. By paying off your debt, you're freeing up a large amount of money each month. use THAT money to invest every month in either mutual funds or a savings account.

I suggest reading Dave Ramsey's total money makeover. He establishes priorities for this stuff that make perfect sense and help you not only get out of debt, but build wealth!!

Answer 3

I would use a few hundred dollars and go to a financial planner. He/she can gage what type of spender/saver you are and put you on a plan that makes the most sense. I am NOT a financial planner, but I invested some $$$ recently and did for myself what I am suggesting for you. It really made me take a long look at my spending habits. You don't want to be back in debt in a year. An inheritance is a special thing. I would invest in some knowledge first, then figure out what do to. Good luck!

Answer 4

This is what i would do.....
pay off your credit cards..........and put exactly how much you were putting towards your credit cards into an investment account......DO NOT GO ON A BUYING SPREE for junk, or whatever.
If you are trying to buy a house, put the bulk of the money (if there is any, after the credit cards) into an investment with a 6 month, or 12 month, or whatever time frame you plan to buy your house.
DO NOT UNDER ANY CIRCUMSTANCES GO AN A VACATION, BUY A CAR, A BOAT, A MINK, A MOTORCYCLE, OR ANY OTHER JUNK!!!

Answer 5

Pay off your debt first, invest the rest.

If you have bad credit, your interest rates will be real high, if you can get a loan that is.

I doubt you will be able to buy a house in its entirety with 50K anyway.

Your debt will drown you. Take care of it first. Invest the rest for later.

Answer 6

each thing which you're presently paying activity on must be payed off, or a minimum of as much as you are able to. in case you invested all of it the activity you will possibly make from it does no longer even disguise the activity out of your debt. you constantly desire to pay off something which you're paying activity on. If it takes all of the money to try this then you certainly ought to placed each penny in direction of that. It would not appear as if it would make you come out extra effective interior the tip, regardless of the undeniable fact that that's going to. call a financial representative and that they assist you to appreciate this too. whether you do desire to take a place some a minimum of pay off the mothers and dads, and the credit enjoying cards, 25% is outrageous.

Answer 7

If you are living some where right now then pay off your credit debt. Then start saving money for that house.
-The next Michael Jackson

Answer 8

You should pay off your debt, if your house is sufficient for living comfortably. If not, buy a house, although I recommend paying off your debt first so your credit rating won't go down much.

Answer 9

pay the debt off first- this will allow you to get a better rate on a house- plus credit card rates are too high to continue paying all that interest.

Answer 10

First, if you have anywhere near $50K in credit card debt, you have a problem that needs to be solved. (By problem, I'm not making a personal attack... simply saying that $50K in CC debt is HUGE and it going to be a major problem for you)

Pay it off. No question. You won't be able to get a mortgage if you're really $50K in debt, anyway.

Answer 11

There's such a thing as "good" debt (e.g. house, which you can tax-deduct the interest paid on mortgage) and "bad" debt (e.g. credit cards, which is high-interest unsecured debt).

Pay off the credit card in full ASAP! You're probably paying double-digit interest. That's just money you're throwing away in interest payments.