 A complete stranger just gave me $1,000. How should I spend it? |
A random person just gave me $1,000 in unmarked, nonconsecutive 5 dollar bills, and they told me to "better my life" with it.
How should I blow it!... |
|
 Love of money is root of all evil?? |
| I had a discussion with a co-worker. She said the love of money is root of all evil. I personally love money because it provides me food and shelter. It helps me take care of my family. I don'... |
|
 Emergency: How can I make my bank account in my name only? |
| I am 18, a senior in high school. I recently opened a checking account with my parents as "cosigners"? I don't know if that's what you'd call it. Anyways, they are ... |
|
 Money making? |
| Hello does anyone have any ideas for making money, like $200? i am 13 so a job isn't exactly an option... neither are chores, parents don't believe in paying me! i need the money within ... |
|
 Borrowed money.. Could I get sued? Am I a jerk? |
| I was talking to my friend about a particularly bad time I was going through with money. I couldn't afford a house payment so he offered to let me borrow $1600.00. I accepted. This was in D... |
|
 I have been left money in a will but the will says that i cannot get access to it for 10 years can i get it b4 |
| i am over 18 in scotland is it possible to get inheretance now or do i have to wait the 10 years? would i be able to get a mortgage based on my inheritence or would i have to wait 10 years?... |
|
 Father died without will could surviving spouse take all? |
| my dad just passed away in march he had a will but it was written before he remarried so now the lawyer says it is no good could his wife get anything she ... |
|
 Do you have any sympathy for the carmakers? |
| I don't. Buying a new car is one of the worst experiences. I bought a new Chevrolet Trailblazer in 2005. Buying it was a nightmare. It took three hours of "negotiating" with the ... |
|
| Is it okay to lose $370 if you're okay with it? |
| I bought a wedding dress at the store that I thought I could pay off monthly. I was confused about the policy of the store and before I knew it, I started getting phone calls saying I needed to pay ... |
|
 How can I pay my credit card off in 12 months? |
Ok, I have a HUGE credit card bill...like, 15k. i have only one credit card, so this is it. i take home about 2,600. i have a home, i have been investing for 3 years in my Roth IRA and 403b.
<... |
|
 Does bankruptcy ruin or life or can you rebound >? |
| i am 30000 in debt from credit cards, seems like i have no choiuce but to file bankruptcy. i have 3 kids and its been tough. does it hurt you forever can i ever have good credit again, ty for ur ... |
|
 Can you live off the interest of a million dollars? |
For example if you put one million dollars into some sort of account could you live off the interest from it.
Additional Details
For example if you put one million dollars into some sort ... |
|
 Bank Deposit into a wrong account? |
| Someoen deposited 10,000 into my bank account. The account number on the deposit slip is mine, and it's been there for over 2 weeks. It's seems it was a transfer from a CD or something. I... |
|
|  |
Inquisitor | Should I pay debt off if I have the cash? |
We have the following scenerio:
$13,177 - Car Loan - @5.95%
$21,950 - Student Loan - @4.95%
$4,000 - Student Loan - Wife - @3.75%
We pay off credit card balances every month, so no credit card debt
As you can see, It totals to almost $40,000.
We have almost $132,000 in cash/cash equivelent assets and about $30,000 in retirement.
My wife and I have good paying jobs and our industries are not as adversly affected in
this economy as others (Eventhough anything could happen, understood).
Our question is....
Should we immedietly pay off the $40,000?
Now this may seem like a no brainer but another scenerio that has gone through my head
is that the balances above equate to an average rate of 4.9%.... A very cheap loan if
I wanted to use the $40,000 towards investment opportunities
Any thoughts??? |
 |
 
LARRY J7
 |
The best thing here... pay off the debt
you will immediately begin making what the interest on this liability has been....and, that is a guarantee.... whereas, any investments with this cash... could hardly guarantee any results at all... especially in the current economic climate....
You will still be quite insulated with the cash that you have left in play and with these debts behind you ... will be free to make any number of choices in the future.. and have a solid "pay rate" history as well....
In the thinking that you are stating with ... the 40 grand is a "cheap loan at 5%".... to invest.... Toss this into the mix....any investment that you did with this capital would immediately be lessened by 5% on any gains that it would receive... before it could be called "profitable"
and, that, my friend would ham string any gains at all in a lot of circumstances... once again...especially in today's market !!
☼ //// |
|
Judy
|
Living totally debt free is an amazing feeling.
Pay it all off and sleep soundly at night.
In the future put away money for buying your next car in cash.
/ |
|
Wilhelmina H
|
Two things to consider:
1. Your cash equivalents are earning 0% interest right now. During periods of inflation you're actually LOSING purchasing power.
2. The interest you're paying on the student loans is deductible. Not a big deal, but worth thinking about.
Here's what I'd do: pay off the car loan and the wife's small student loan. That way you've gotten rid of 2 payments per month and eliminated the highest-interest debt.
Also keep in mind that if you're going to invest any of your cash equivalents you need to earn at least 4.95% in order to balance the remaining student loan -- otherwise you're going backwards. Vanguard has a few super high-quality short-term bond funds you can drop your cash into and make something like 5% return.
Good on you for saving up so much money! Keep up the good work. |
|
ARTmom
|
I would pay it off-in this economy |
|
Lou C
|
Your scenario is great. In this economy however I would clear the debt first.
Now Fixed mortgage interest rates are a low 4.85% for 30 years if you ever needed some extra money.
I would not invest in stocks. Tax free municipal bonds is what I would do for sure. |
|
Sal N
|
I agree with everyone here....but before paying off the car loan...you need to consider...how long was your installment and how long ago did you get the car? (if its been at least two years plus, you would have paid off most/all of the interest already...SO paying off the car now, wouldn't save you interest at 5.95%...since you're paying principal now.
If you just bought a new car recently...then pay the car.
(I couldn't tell if 13K was new small fuel efficient car or remaining balance of a higher price car bought a few years back.)
For my own comfort level I would ony double or triple payment for school loan...once one is paid I would snowball that payment until all are paid off...As long as I am working, I would keep paying more until paid....what are you considering for investments? |
|
besitos2610
 |
I would make double payments until it is paid off. This way your credit will go way up. If you pay it off all at once, your credit will go up, but not as much. Figure out how much it will cost you, and with the money left over, invest it however you choose. |
|
Echo
|
I would definately go with paying it off and starting fresh. It is amazing to be debt free and then all your money is yours, and is not going for interest for another loan (no matter how small). |
|
JP
|
4.9% is a low APR...very "cheap" indeed as you stated. So I'd like to learn more about your "investment options". What kind of return can you realistically expect to make on the $40k? |
|
Ed P
|
Pay it off. My wife and i recently made a similar decision. It feels much better knowing that you don't owe anyone anything.
As long as you still have cash for emergencies get rid of all of the debt. |
|
warriorfstride
|
I would pay the car off and then split the car payment between the other two loans and pay them off faster. I would not spend all of my nest egg to pay them all off at once. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
11 | 6 minutes(s) ago
| | | |
11 | 31 minutes(s) ago
| | | |
11 | 46 minutes(s) ago
| | | |
11 | 3 hour(s) ago
| | | |
11 | 4 hour(s) ago
| | | |
11 | 7 hour(s) ago
| | | |
10 | 8 hour(s) ago
| | | |
11 | 9 hour(s) ago
| | | |
9 | 2 day(s) ago
| | | |
11 | 6 day(s) ago
| |
|
Homepage 
Financial
Forum 
Personal Finance 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
