so you just got a check for $20,000 what would you do?

if you where just handed a $20,000 check what would you do with it?
lets say taxes are already taken out. and you have $10,000 worth of credit card debt that is at a rate of 15%. you also have another $10,000 worth of doctors bills, those are at 0% interest but the payments are like $500 a month.
then you have a car you owe $10,000 on and the rate is 5.5%
you also have a second on your house that is 9% and you owe $10,000 on that but the payment is only $125 a month

so choice's
#1 do not pay off anything and use the money for fun
#2 pay off all the highest rate stuff you can
#3 pay off the bills that cost you the most per month (like the doctors bills)
#4 pay off the car so you own it
#5 ???????????


i am not making this a poll let just see what all you smart people would do?

before anyone asks no this did not happen to me but i know someone who it did happen to.

 

hookers and blow

 

def would pick #2. pay off as much of the highest rate things you can.
would end up saving you some cash for mods later

 

nice answer LOL

 

I would pay off the credit card and the second on the house, that way you are paying a ridiculous amount of interest...

 

Bills and long travel

 

If I had to spend it. It would go to getting a 4x4 Taco. Then I would equip it about the same as the one I gave now. Then maybe an AR or somthing in that family.

I would probably save it 20k would be nice to have when you walk out of college.

 

TRD SUPERCHARGER!!!!

 

defintely pay of the credit card debt first, then the medical fees. Then use some of the extra payment room you have (no longer payine the $500/ month) and apply it to the second. say increase your payment there to $300 per month. Extra cash above the 125 will likely be applied straight to the principal so it'll be paid off faster.... all of which results in more money for mods!!! or hookers and blow...

 

Well, my family and I don't carry much debt at this point in our lives (thanks Dave Ramsey!) but for the sake of argument I would take the $20K and pay off as much unsecured debt (credit card, sig loans, etc), starting with those with the lowest balances. Of course, if we had not saved any money (emergency fund) before, I would dump $5K in that first then work on the debt. The truck would have to wait.

Now if I was young, single and had no family, I'd be breaking out the Taco accessories catalogs!

 

1) Pay off the credit card. That's compound interest. Everything else's balance owed is decreasing while that one increases.

2) Max out my Roth IRA contributions for the year.

3) Ensure an Oh-Shit-Fund of 6 months of living expenses exists.

4) Remainder (if any) into a principle-only payment on whichever debt has the highest yearly gross-dollar interest amount.

 

pay off whatever bills i could then whatever was leftover use it for the truck.

 

yup. pretty basic stuff here

 

#1 thats the American way!

But seriously #2

 

Credit card and second mortgage. Highest interest rates first. A truck, while awesome to own, is a horrible investment since they depreciate very quickly. Paying it off quickly doesn't really help you out in the long run. 0% interest, you'll never borrow money that cheap every again so let it run out and keep making the monthly payments. Make extra payments on the truck and doctor bills with all the money you're saving after paying off the second mortgage and the credit card.

 

now remember im a kid..... so im a jackass. i would get lt front and rear kings all the way around. bumps trippleby passes limit straps. (if 20k would supply all this)

and say fuck bills. those can wait long travel cant. haha

EDIT: but in reality i would probably (my mom would make me) pay off my credit card bills and doc bills

 

10K to Doctor Bills
10K credit cards.
Call it a awesome day

 

Wife..............................................Me






Probably do some upgrades to the house, pay some bills put some away, buy something nice for the truck and take a trip ...

 

20,000 POWERBALL tickets! That shit is up to 212 Million now!
:beer:

 

My dream 3" lift and some 35"s maybe a nice welder set up =P and some gears, savings for suckers!