CowboyCO
DIS Veteran
- Joined
- Oct 12, 2005
- Messages
- 3,023
I don't need the answer to this questions, but with all the threads asking how to use their tax refund, I thought I would offer up something.
If you put $$ in 529 or an IRA, you might make 3-8% - and that's only if the market goes up. However, if you pay down your CC balances, in effect you are making 20-30% depending on what your CC interest rate is. If you pay off a $1,000 in CC debt at 20%, that's saving $200 in interest in a year. That's $200 you can use to pay down other debt.
If you put $$ in 529 or an IRA, you might make 3-8% - and that's only if the market goes up. However, if you pay down your CC balances, in effect you are making 20-30% depending on what your CC interest rate is. If you pay off a $1,000 in CC debt at 20%, that's saving $200 in interest in a year. That's $200 you can use to pay down other debt.
