Would Love Feedback on Our Debt Repayment

How has your week been rolling?

We are setting into the second quarter at this point. Doing well.

We kicked our second quarter off with a field trip, which the kids adored. Oh, my gracious the amount of work for me was insane but seeing the pride of accomplishment on the kid’s faces was well worth it.

So, I know a while back I spoke about how some relatives of mine passed away about a year and a half ago, at this point. They, kindly, left their estate to me- per their will. As part of this, I have received a fairly substantial amount of money. We have already set aside 10 percent for ourselves. I know my aunt and uncle knew I would be responsible with their gift, but I also know they would want me to have a little fun too.

The short of this is, the sum would pay off the bulk of our debt leaving us with around $10k and whatever is left of our car (I really should know what that is but I really do not). The car is around 15k or so. Anyways, we also toyed with the idea of setting aside 15% to put into an investment account.

Really, the point of this post is; if you had around 120K in debt and received a sum that would wipe out most of that, what would you do? Keep reading for some of our other ideas.

I already talked about the take the 90% that is left and just get rid of the bulk of the debt. I have also covered the invest 15%. This leaves us with more debt to continue to pay on. Another idea we bounced around was paying off everything with an interest rate of 4% and higher; since, in theory, money would more wisely be utilized in an investment account that has a historical return rate of, around, 8%.

I don’t know. Money shouldn’t be emotional. But it is. Being debt free has a million and one great opportunities before it. But, so does investing (ie. Retire early).

What would you do?