No. of Recommendations: 0

>>>>>>>>I have an old $5,000 face value modified life insurance policy started by my father. At present, with a loan ouut agianst it and not paying the premiums on it for awhile, the surrender value is only about $2,100 now.

Coincidently I have one cc debt of $2,200 I'm working to pay off asap.

Do I consider the insurance an invesment and pay back the loan to myself and have $5,000 at retirement plus 6% inerest or what? I would be leaning to cleaning up the imedeate debt but I want to Know what some of You all think<<<<<<<<<<<<<


I preface this by saying, I am no expert on life insurance, but if you are some how able to pay off your cc debt with the life insurance I would reccommend it!
Credit card debt is evil no matter how small it may seem. The sooner you can get out the better. Based on the high interest rates of cc and such a small return on your insurace "investment", it would be better off to clean the slate and start saving. You're paying no interest, you're are paying yourself back as you mentioned, and most importantly you are only paying yourself. A very Foolish move!
Good luck, and let us know what you decide.

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