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I have $50,000 – what should I do with it?

My whole life I have had trouble with credit cards and have recently been given $50,000 from a will, which will wipe out my credit card debt but I was wondering if I should invest the money and use the gains I hopefully make to get rid of my credit card debts? What do you think?

As I don’t know your full circumstances I am going to guess, and while what I suggest is responsible, it might not be the best for building up a big return quickly.

You have implied that you have had trouble with credit cards your whole life, so pay them off and make sure you apply for a debit card.

Then leave an amount in your bank account to cover the things you usually buy on your credit card.

When you use your own money, you tend to think twice before you spend.

Then work out how much interest you are saving not having a credit card and add this to any money you have left from your $50,000 and think about putting it into an investment fund.

Use search engines to see what funds are the best performers on a five- or ten-year basis and start building up your income.

If you don’t want to touch the money, you could put it into your super fund and it would really build up over time.

You have been given a chance to free yourself from the credit card trap, so this is a great time to make the most of it.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

 

Published on: Tuesday, February 02, 2010

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