Lump Sum Amount

[kleather]

I am going to get about $32,000.00 next month. I have $33,000 in credit card debt but also have 2 daughters in college. Should I save the money for college, pay off credit card debt or put the money in some type of investment?

[splodger]

Personally , I would clear the debt. You are probably paying a hefty amount in interest on this which may accrue over the years. You may never have the chance to clear it again.

[Scarlett]

I agree with splodger. But if you can't face spending it all on "nothing", you could always consolidate your cards to a low rate loan, so you are actually taking control and paying them off- maybe pay off HALF the balance, and then save the rest for any crises your daughters might need the money for!! Don't just give them money- it will go- wait until they really need it for something constructive, and will therefore appreciate it.

[Uzoma]

Not only pay off all of your debts but the money that you would normally pay towards your credit cards - start to put that towards a long term regular savings plan towards your daughter's education.

[WoWo]

Agree with Uzoma. Its generally agreed the most tax efficient use of money is to pay of existing loans. You will save on the interest you pay the credit companies and save with the money you no long pay into them.

[WoWo]

Just another quick note. Banks make money by lending money at a high interest rate and paying lower interest on savings. Therefore putting the money into a savings account will never give you a better return than pay the debt off and saving the money.