Should I just wipe out the debt right away or would it make any sense to consolidate and pay off?
I'm carrying approx. $35k in CC debt. I just inherited a substantial
amount of money ($700k+), mostly tax-free securities earning 5 - 7 per
cent interest.
Should I just wipe out the debt right away or would it make any sense
to consolidate and pay off?
Financial Fundamental #2. If you can figure out how to borrow money
at a lower interest rate and invest it at a higher interest rate, do it!
This is how banks, insurance companies, etc make money. For most people,
only borrowing on your home will work for this.
The converse is true. If you are borrowing at a higher rate, and invest
at a lower rate, use the investment money to pay off the higher rate.
For most people, paying off credit card debt with savings makes sense.