Year End Bonus
What should I do with my one month bonus ?
Outstanding
1. 156 k at 5%on primary (but do not live there, rental)
2. 25k line of credit at 4% attached to the no 1.
3. 64, k at 5.%
total outstanding 245k I would like to read your ideas where to put this bonus money. have enough cash for 6 months back up in bank.
thanks
garcia
In general, the rule is to pay off highest interest rates first. I'm guessing that the 64K in your third point, is credit card debt since you didn't attribute it to a mortgage. If that is the case, I would say that is the place to direct your bonus money. The rental property will continue to pay for itself. The line of credit is on a smaller interest rate. Go for the credit card debt.
[addsig]