I am about to get an inheritance from my mother’s estate. We’ve got a home mortgage, investment loans, credit card debt and personal loans. Which should I pay off first?
Ans (Rika from Affinitas)
Normally you look at paying off the most expensive loans first – and in most cases these are credit cards and then personal loans. Then you look at paying non tax deductible debt (home mortgage) and then tax deductible investment loans.
And beware of “parking” funds into an investment loan for a short term, because it can spoil the long term deductibility if you do not have a 100% loan offset account. In a situation like Beryl’s, it’s worthwhile discussing options with your accountant before doing anything with the money.
If you are interested in the services that we offer and would like to have a chat with one of our friendly staff, please contact us on 3359 5244, visit our website or come see us in our Aspley Office and let us explain what we can do for you!