$ question

IF someone just planted 1000.00 in your hand, what would you do with it?

I'm having this debate with my husband b/c his father just sold his house and is giving DH & SIL $1000.00 each.

DH wants to just put it towards his bills.. He has a little CC debt, but nothing we can't pay off if we're consistent.

*I* think we should invest it. When are we ever going to come across $1000.00 like that out of the blue that DOESN'T have to go towards something, you know?

We have nothing saved (aside from Aidan's college savings and even that isn't much)

I think it's smart to pay down debt. Check the interest rate that you are getting charged on your bills...it'll probably be a lot higher than what you would get in any savings or money market account. There is potential to make a large percentage investing in the stock/ or futures market but there is also a lot of added risk.

I agree with your hubby here...pay down debt.

Hope that helps

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Posted by MJDoc12

save it--put it in a high interest savings account. and don't ever touch it. you never know when you might need it

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and where do i get one of those?

I just made a big deposit to aidan's CD account that, when I opened 8 years ago had an interest of 6.5..

It is NOW 3.2

I asked the guy, 'WHATS THE PURPOSE OF HAVING A CD ACCOUNT WHEN IT MAKES LITTLE TO NOTHING??'

I don't know because I would hate to have any kind of debt and would rather have that paid off and start with a clean slate. On the other hand investing will turn it into more money. it would depend really what the interest rates are on the cc.

What about high interest savings account? If the interest was higher than the cc rate I would put it into that and then save the money and use the interest to slowly pay off the cc. It is good to also keep some money in the bank in case of emergency.

i didn't help you at all

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Posted by micknjohn

I think it's smart to pay down debt. Check the interest rate that you are getting charged on your bills...it'll probably be a lot higher than what you would get in any savings or money market account. There is potential to make a large percentage investing in the stock/ or futures market but there is also a lot of added risk.

I agree with your hubby here...pay down debt.

Hope that helps

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thank you!

little to no interest on the CCs... DH opened up a new CC to transfer the balance at 0% APR for 15months... he split up the payments so he'll have it paid off in time

I use the tarnsfer balance offers my CC give me from time to time... 1.99% interest until Feb 2009 etc etc and have then paid off in time.

we both have excellent credit, so our CCs are always giving us offers like that... We're being pretty smart about using them wisely

Are you paying interest on the cc?
Transfer to a no interest card. My friend just did that. She was up to her eyeballs in debt and her payments were not doing a thing since she was only paying interest every month. Now she is actually paying off the principle.

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Posted by MeNBobs

Are you paying interest on the cc?
Transfer to a no interest card. My friend just did that. She was up to her eyeballs in debt and her payments were not doing a thing since she was only paying interest every month. Now she is actually paying off the principle.

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nope. little to no interest on the CCs. The CCS I use daily, I pay off in full. The others, I use soley for the purpose of balance transfers when I need a little extra $$.

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Posted by MeNBobs



I don't know because I would hate to have any kind of debt and would rather have that paid off and start with a clean slate. On the other hand investing will turn it into more money. it would depend really what the interest rates are on the cc.

What about high interest savings account? If the interest was higher than the cc rate I would put it into that and then save the money and use the interest to slowly pay off the cc. It is good to also keep some money in the bank in case of emergency.

i didn't help you at all

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you help me everyday, sunshine.

Sounds like you have the cc thing in check.

I would open up an ING account with the $1k.

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Posted by carolinep24

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Posted by MeNBobs

Are you paying interest on the cc?
Transfer to a no interest card. My friend just did that. She was up to her eyeballs in debt and her payments were not doing a thing since she was only paying interest every month. Now she is actually paying off the principle.

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nope. little to no interest on the CCs. The CCS I use daily, I pay off in full. The others, I use soley for the purpose of balance transfers when I need a little extra $$.

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Since your not paying interest I would put it in a high interest savings account. It will give you peace of mind knowing you have it if you need it and it will also be making you some money without all the risk of a investment.

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Posted by MeNBobs

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Posted by carolinep24

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Posted by MeNBobs

Are you paying interest on the cc?
Transfer to a no interest card. My friend just did that. She was up to her eyeballs in debt and her payments were not doing a thing since she was only paying interest every month. Now she is actually paying off the principle.

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nope. little to no interest on the CCs. The CCS I use daily, I pay off in full. The others, I use soley for the purpose of balance transfers when I need a little extra $$.

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Since your not paying interest I would put it in a high interest savings account. It will give you peace of mind knowing you have it if you need it and it will also be making you some money without all the risk of a investment.

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ITA. Although you don't make much in interest in general!

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Posted by SusiBtoM

Sounds like you have the cc thing in check.

I would open up an ING account with the $1k.

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ok new question-- what constitutes a high interest savings account nowadays?

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Posted by carolinep24

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Posted by micknjohn

I think it's smart to pay down debt. Check the interest rate that you are getting charged on your bills...it'll probably be a lot higher than what you would get in any savings or money market account. There is potential to make a large percentage investing in the stock/ or futures market but there is also a lot of added risk.

I agree with your hubby here...pay down debt.

Hope that helps

---

thank you!

little to no interest on the CCs... DH opened up a new CC to transfer the balance at 0% APR for 15months... he split up the payments so he'll have it paid off in time

I use the tarnsfer balance offers my CC give me from time to time... 1.99% interest until Feb 2009 etc etc and have then paid off in time.

we both have excellent credit, so our CCs are always giving us offers like that... We're being pretty smart about using them wisely

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Ok did a little research for you...

Countrywide bank is offering 3.75% on a 6 month cd...only down side is you need 10K....

If that doesn;t work for you...you can open up an ONLINE WAMU checking account which will pay you 3.30%. Make sure its the online account because the brick and mortar will pay you a much much lower rate.. This actually seems like one of the best deals around since your money will be liquid.

On Wednesday in Newsday they list all of the money market and cd rates at the banks...you may want to check that out.

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Posted by micknjohn

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Posted by carolinep24

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Posted by micknjohn

I think it's smart to pay down debt. Check the interest rate that you are getting charged on your bills...it'll probably be a lot higher than what you would get in any savings or money market account. There is potential to make a large percentage investing in the stock/ or futures market but there is also a lot of added risk.

I agree with your hubby here...pay down debt.

Hope that helps

---

thank you!

little to no interest on the CCs... DH opened up a new CC to transfer the balance at 0% APR for 15months... he split up the payments so he'll have it paid off in time

I use the tarnsfer balance offers my CC give me from time to time... 1.99% interest until Feb 2009 etc etc and have then paid off in time.

we both have excellent credit, so our CCs are always giving us offers like that... We're being pretty smart about using them wisely

---

Ok did a little research for you...

Countrywide bank is offering 3.75% on a 6 month cd...only down side is you need 10K....

If that doesn;t work for you...you can open up an ONLINE WAMU checking account which will pay you 3.30%. Make sure its the online account because the brick and mortar will pay you a much much lower rate.. This actually seems like one of the best deals around since your money will be liquid.

On Wednesday in Newsday they list all of the money market and cd rates at the banks...you may want to check that out.

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thank you!

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Posted by micknjohn

I think it's smart to pay down debt. Check the interest rate that you are getting charged on your bills...it'll probably be a lot higher than what you would get in any savings or money market account. There is potential to make a large percentage investing in the stock/ or futures market but there is also a lot of added risk.

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I completely agree

Caroline, here is the link for ING direct, currently offering 3% with no minimums and no fees

ING