Ask Terry Questions Inheritence


By Terry Savage on November 11, 2018 | Credit/Debt

I recently inherited a small amount of money. Under 100k. Should I pay off cc’s and auto loan, or invest it and continue to pay off debts as before?

Terry Says

Take a look at the interest rate you’re paying on your auto loan and your credit cards. Especially the credit cards! You aren’t likely to earn nearly as much on the money as you are paying in interest. Take advantage of this once-in-a-lifetime opportunity to GET OUT OF DEBT! Pay off the credit cards, and then close all but the oldest — so you are never tempted to get into debt again. As for the car loan, unless you’re “upside down” — meaning you owe more than the car is worth — consider selling it and paying off the loan. Then get a great deal buying a car for cash — negotiate hard! And plan to keep that new car for at least 8 years — with no payments!
And if there is any left over, either put it in a bank money market deposit account — or, if you’re working, open a ROTH Individual Retirement Account at — and put some money in the S&P 500 Stock Index Fund, and some in the Balanced Fund.

Whoever left you this blessing gave you a real opportunity to turn your life around and live without debt in the future! Be sure to learn the lesson.



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