How is $50k spent in the best possible way among a several debts and a paltry savings?
Probably the best thing is to talk to a financial specialist though, instead of a bunch of jokers on the internet. I’ll agree with that sentiment. It’ll cost you a little, but it sounds like you just came across $50k. It’ll probably end up saving you quite a bit more. But, just to throw my opinion out there, I’ll go ahead and echo the idea of paying off high interest loans first, things that depreciate fastest next. Of course, depending on where you live, paying off the car first might be the best bet… If you’ve taken a loan out to pay for it I’m guessing you have collision insurance, which can cost you through the nose if you’ve got a bad driving record, a kid that’s about 16, or if you live in the wrong zip code. Of course, if you would opt for collision insurance, even without the loan, ignore this advice.
If you free yourself from debt first you will likely just start accumulating debt all over again and still have no savings. Put the money away in some form of investment, say stocks and continue paying down your existing debts with your current income. You could theoretically do better by paying off the debts and then taking the extra money each month from not having to make debt payments and investing that. However, human nature is tough here and most of us have a hard time not just spending the extra cash on current needs and wants. Perhaps a direct withdrawal stock purchase plan might work though, where money is automatically taken each month from your checking account to buy stocks (usually a mutual fund). Since the mortgages are tax preferenced I wouldn’t touch those, regardless of which course you decide.
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