Each of us lives only now, in this brief instant. The rest has been lived already. So make the most thoughtful choices you can today that will lead to a better future.
Steve's Thought of the Day
Stop drifting and hoping a magic solution will appear. Instead, you can participate in rescuing yourself. Find peace by pursuing facts through trusted advisers and research rather than the blind trust of salespeople trying to sell you something by almost any means necessary.
Steve's Thought of the Day
Make decisions to deal with your debt with logic and facts, not assumptions, and worry about what other people will think. People who judge you will soon be forgotten. Nobody thinks about anyone that much.
Steve's Thought of the Day
The world is nothing but constant change. Your life is only a perception. Choose a way out of debt based on facts, not assumptions. Do what is best for your future because those that judge you will not feed you.
Steve's Thought of the Day
Do you have a greater responsibility to repair your financial past or your financial present and future? Make good choices that allow you to tackle your debt and immediately start building your emergency fund and saving for retirement. Tomorrow will be here before you know it. Lost time is a sin.
Steve's Thought of the Day
There is no sense in wasting a perfectly good financial mistake. Instead, learn from it and do better moving forward. The past is gone. Turn and face the future now.
Steve's Thought of the Day
Those who judge you for past financial mistakes are not your friends. So don't make choices about your future out of fear of what they may think. Instead, make choices based on truth, fact, and what is best for you moving forward from today.
Steve's Thought of the Day
Don't believe everything you think. Challenge your assumptions about getting out of debt. Do what is best for you, not others.
Steve's Thought of the Day
Is it less moral to file bankruptcy or to not take action that leaves you old, broke, hungry, and dependent on others?
Steve's Thought of the Day
If bankruptcy is so bad, why did our Founding Fathers specifically include it in the U.S. Constitution as protection for financial difficulties?
Steve's Thought of the Day
Maybe it is time to read what the Bible really says about bankruptcy instead of listening to the assumptions of others. Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
Stop listening to people that say bankruptcy is a last resort. It is neither first nor last. It is a tool like credit counseling, debt settlement, and others. For the best result, you need to use the right tool for the job.
Steve's Thought of the Day
People that tell you to avoid bankruptcy want to sell you something else are repeating something they heard or do not know what they are talking about. Get the facts and then make your own decision. Don't let an unskilled script-reading commissioned salesperson make life decisions for you.
Steve's Thought of the Day
Debt problems are like fingerprints. No two are alike. A one-size-fits-all solution will give you a one-size-fits-all result. You deserve better.
Steve's Thought of the Day
You are not your debt. Your value, self-esteem, and existence should not be defined by the money troubles you may be facing right now. Debt problems are solved with proper action, not guilt, self-hatred, and disgust.
Steve's Thought of the Day
Debt is nothing more than math wrapped in emotion. The math is easy, the emotional part leads us to do impulsive things. Not the right thing.
Steve's Thought of the Day
What type of money personality do you have? It is important to know. Take my online test now and discover how you unconsciously deal with money, credit, and debt.
Steve's Thought of the Day
How much retirement savings are you willing to throw away by dealing with your old debt instead of preparing for your financial future? Find how much you will lose by making the wrong choice. Use my online debt repayment calculator now.
Steve's Thought of the Day
Does it make more sense to ask for life-altering debt advice from an unskilled and untrained commissioned salesperson in a call center or an experienced debt coach like Damon Day that provides a customized solution for money troubles?
Steve's Thought of the Day
Throw out your misperceptions and you'll be fine. (And who is stopping you from throwing them out?) - Marcus Aurelius
I Got a Gift of $9K. What Should I Do With It? – George
Heres my question-I recently received a $9K gift. It just so happens I am doing some home repairs immediately that will equal about $9 or $10K. These must be done. I need a new roof right away which is about $5K and the other necessary repairs will be another $5K. I can use that gift to pay for these repairs and its done. However I am also $19K in credit card debt at 8.24% APR purchases and $1K credit card debt on cash advances at 19%.
Should I use the entire gift to pay down the credit card to $11K and then get a home equity for the $10K in home repairs I believe is at 3.74 or 4%? What do you think?? What is my smartest move?
Thanks Steve!
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George”
Dear George,
If you don’t have any money in a savings account to fall back on in case of emergencies then I think you should use half the gift money to reduce your credit card debt, save half and get a home equity loan for the home repairs.
You can always contact your credit card company and ask if there is a process to specifically apply $1,000 to the cash advance, I doubt there is. Generally balances are reduced on credit cards with the lowest interest being paid off first.
6 thoughts on “I Got a Gift of $9K. What Should I Do With It? – George”
Ohhh, Thank you! I thought for sure i was going to get the much lower variable apr which is around 4.5%. the fixed rate is over 6% which isnt too far off from the credit card rate of 8.24%. hmmmm
My bet is that the variable rate will climb in the years to come. Rates are historically on average higher than they are right now. The only advantage of moving the debt on to the house is that the interest become deductible. Outside of that, moving the 8.24% interest off would not be a major concern but getting to the 19% cash advance balance is. The only way to get to that is to pay off the lower balance on the card.
Steve, you mention the HELOC – for my home repairs and consolidating the remaining cc balance, do i want a home equity loan or a home equity line of credit?? Which one is recommended? thanks once more 🙂 George
Hey Steve, Thank you very much! one other question, i DO have a pretty good savings, so if i do use say $7K of this gift to pay down the credit card and then get a home equity for the home repairs, should i also put the remaining $13K credit card balance onto the home equity as well to now have it on the lower rate or should i keep the rest of that on the credit card? Thank again George
Consolidating the balance into the HELOC is a reasonable approach IF you don’t run the card back up. It will in turn make the interest deductible as long as the total loans don’t exceed the value of the house, and it will payoff the ridiculous interest rate on the card.
Ohhh, Thank you! I thought for sure i was going to get the much lower variable apr which is around 4.5%. the fixed rate is over 6% which isnt too far off from the credit card rate of 8.24%. hmmmm
George,
My bet is that the variable rate will climb in the years to come. Rates are historically on average higher than they are right now. The only advantage of moving the debt on to the house is that the interest become deductible. Outside of that, moving the 8.24% interest off would not be a major concern but getting to the 19% cash advance balance is. The only way to get to that is to pay off the lower balance on the card.
Steve
Steve, you mention the HELOC – for my home repairs and consolidating the remaining cc balance, do i want a home equity loan or a home equity line of credit?? Which one is recommended? thanks once more 🙂
George
George,
Doesn’t really matter to me as long as it is a fixed rate of interest loan that is manageable for you to handle.
Steve
Hey Steve, Thank you very much! one other question, i DO have a pretty good savings, so if i do use say $7K of this gift to pay down the credit card and then get a home equity for the home repairs, should i also put the remaining $13K credit card balance onto the home equity as well to now have it on the lower rate or should i keep the rest of that on the credit card? Thank again
George
George,
Consolidating the balance into the HELOC is a reasonable approach IF you don’t run the card back up. It will in turn make the interest deductible as long as the total loans don’t exceed the value of the house, and it will payoff the ridiculous interest rate on the card.
Steve