Was reading this article on rediff about what to do with an unexpected windfall. Not that I have a windfall coming my way, I just wanted to see what the author had in mind. One point caught my fancy:
4. Look at settling your debt
You could also spend your windfall clearing your debt. Servicing a personal loan or credit card debt is very, very expensive. The rates of interest are in the 18% to 30% category. It would be better to clear the loans so that you don't spend any more of your money in paying off this massive interest.
Interesting how the writer assumes that everyone would have a debt. Nowhere does he/she mention 'debt (if you have one)'. Am I the only person out here who doesn't have a debt or a loan? Why is it mentioned so casually in this article? If I did have a loan on which I was paying 18-30% interest, wouldn't paying it off be the first thing on my mind if I get an extraordinary amount of money? Are there really people who wouldn't pay it off?
1 comment:
there are people like me who are paying the personal loan EMI's even though we can clear them now..
the problem is do you spend now and pay later with interest or save now and spend later with inflation..i think both are same..and as someone said 'life may be short..so lets have dessert first'..:-)
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