I'm going to be getting a check for approximately $50k?

in the next couple of months. My husband and I have a new mortgage ($150k), one vehicle loan ($22k) and credit card debt of approx $8k. The credit card debt is entirely from 2004/2005 when my husband had his own over the road trucking company, we don%26#039;t use credit cards in our household.

How should I invest / pay debts? Obviously, I don%26#039;t think I should use all the money to pay the debts? Should I? What should we do?

Thanks for any help.

I%26#039;m going to be getting a check for approximately $50k?

My advice, get all of your debts paid off. That way you are free from headaches. That way if you wanted a personal loan sometime in the future, you%26#039;ll be able to afford it.

I%26#039;m going to be getting a check for approximately $50k?

pay the car and credit card off they are alot higher interest then the home loan. so you would save a lot more money that way. then reinvest some on home improvements and a nice savings what you have left go on vacation

I%26#039;m going to be getting a check for approximately $50k?

Pay off the car loan. Pay off the credit cards. Put enough into a savings account for a rainy day fund. If you have any left, invest it.

It doesn%26#039;t make any sense to carry credit card debt and a car loan when you have that kind of money. Especially the credit card debt because of the outrageous interest they charge.

Oh...your rainy day fund should be enough to cover ALL of your expenses for at least three months.

I%26#039;m going to be getting a check for approximately $50k?

Pay the credit card debt. You won%26#039;t find an investment that will pay more than the interest on that.

50 - 8 = 42

What is the interest on the vehicle loan? Most likely you won%26#039;t find an investment that will pay more than that either. Pay it off.

42 - 22 = 10

Look for investing the rest in ...

1) keep some %26quot;rainy day%26quot; cash. Fixing your house? Car trouble? Medical bills?

2) pre-tax retirement account?

3) A mutual fund or certificate of deposit

I%26#039;m going to be getting a check for approximately $50k?

How much interest could you make if you invested the entire 50K - 4 or 5 percent? Even if you were a saavy investor, that STILL would be hard to do.

So how much is the interest on you credit card, or you auto loan, or your house? I will bet they are ALL over 5 percent.

If so, the answer is simple - use the entire amount to pay down your debt. First the credit card ( which has to be the highest), then the car, and then use the rest to pay off the house - IF you can pay off early. If you cannot pay off the mortgage early (and some of them you cannot), then I would either put the remaining 20K in the bank, or go enjoy a holiday or some combination of the two.

But if you can - ALWAYS pay off the debt first.

I%26#039;m going to be getting a check for approximately $50k?

Personally, I%26#039;d pay the credit cards off because they are going to end up costing you so much more in the end (and already have if you%26#039;ve had them since 04 and 05. After that i%26#039;d go look up one of these loan calculators that so many of the banks have posted on line and see how much it would save you in interest if you paid say 10k on the car or the house. Other than that i%26#039;d say put it in savings, it sounds like you guys have done great so far in not getting into debt over your heads but things come up and it%26#039;s nice to have the safetynet..you may even have some fun investing it...Call Edward Jones or someone to that effect...Oh and i%26#039;d take a cruise, you%26#039;ve got to have a little fun with it too ;-)

I%26#039;m going to be getting a check for approximately $50k?

It all depends on your personal preferences. If you are uncomfortable with your debt, then lowering your debt might be a priority.

If your debt intrest rate is higher than the intrest rate you make on your investments than pay down as much debt as you can. However take tax incentives (your mortgage) into account. Mot likely your credit card debt should be paid of, which would have a positive effect on your credit score.

I%26#039;m going to be getting a check for approximately $50k?

Pay off the the debts!

You will feel so much better not owing anything but the mortgage.

I did it and it is a great feeling.

The extra $30k should be invested.

I won%26#039;t and can%26#039;t give you a mutual fund to do it, but check Morning star ratings for Mutual Funds the last 10 years.

That will include the 2002 dump and the run up since.

Maybe check 20 year returns.

Pick your best and hold for the returns.

I%26#039;m going to be getting a check for approximately $50k?

Definately pay off the credit cards. Don%26#039;t put this money on the house, that%26#039;s likely good debt at a good interest rate. But I would take 40k and invest it broadly, mutual funds, bonds, securities, blue chips, the whole works. Get a financial advisor at Smith Barney or elsewhere and get this lump sum of money working and growing, and add to it regularly each month.

I%26#039;m going to be getting a check for approximately $50k?

You need to look at the interest rates on your debt versus a moderate estimate of rate of return on any investments. For any extra cash you%26#039;re investing instead of using to pay off debts, you%26#039;re essentially borrowing money to invest. So, if the interest rate on investments (say, 8%) is higher than your interest rate on mortgage (say, 6%), then you should invest. Credit card rates are rarely lower than investment return rates (plus the interest on mortgage is tax-deductible), so I%26#039;d recommend paying off credit cards and maybe vehicle loan (if not from your home equity). Then if you can get a higher rate of return on investment, do that instead of paying a lot on your mortgage:)

I%26#039;m going to be getting a check for approximately $50k?

Yes. You should pay off all your debt.

I%26#039;m going to be getting a check for approximately $50k?

Payoff credit cards --- left with 42k

How much is interest on car note? If above what you think you can earn on $$ then pay it off

left (most likely) with 20k

Save in tiered CD%26#039;s for emergency fund Life happens, be prepared for it ---- You will sleep better for years knowing that you have your broken transmission paid for even before it happens --

With that kind of a backup fund you can even raise the deductibles on your auto ins and save $$ on yearly premiums.

Drive safely!