12-04-2006, 01:56 PM
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#1 |
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Savings Advisor
Join Date: Aug 2006
Location: Central CT
Age: 32
Posts: 761
Rep Power: 7  |
What to do with 3,000
I came across a thread on a car forum I particiapte on, where the poster asked what to do with 3000 that he has.
He has a 15k loan, but with 0% interest on it (assuming family, student, or on a 0% credit card) The problem with saving 3grand, is that at current inflation numbers around 3%, and peak interest around 5%, it will take nearly 25 years to get anything useful out of that money by saving it. Even at 0%, my suggestion is to simply put it towards what he owes. 0% or not, its still debt, and will eventually have to be paid. 3k isn't worth saving if you can't add to it. |
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12-06-2006, 03:05 PM
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#2 |
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Super Moderator
Join Date: Aug 2006
Location: West Coast
Posts: 773
Rep Power: 7 |
it depends on his current situation. if he has no serious debt, a dependable car and doesn't have any events like a wedding or anything in the future.
if he has enough in the bank to pay his bills, he has an emergency fund, and already is a homeowner, i say pay off debt. the first thing in buying a home is debt/credit ratio. pay off bills, build credit, invest in something. it's a horrible cycle but it's how life in the U.S. is. |
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