Let’s say you receive a lump-sum of money — like an inheritance, tax refund or commission off of a large sale. Of course it’ll tempting to spend, invest or put that money into savings. But you should also consider using those funds to pay down any loan or credit card debt you might have.
Depending on the type of the loan or credit card*, paying down your debt(s) could provide you a nice return by lowering your interest costs. Plus, you might find yourself in a position to repay the debt sooner, freeing-up extra cash in the long run.
See the potential impact of putting a lump-sum toward your debt:
*Before putting a lump sum toward your debt, be sure to consult your lender or credit card issuer.
Disclaimer: Estimates are for educational purposes only and do not represent a financing offer from Dupaco Community Credit Union.