No. of Recommendations: 0
<<Should I:

1. Take my settlement, pay off the cards for good, and have nothing left to show for it? And then
trust myself to be disciplined enough to save future surplus.

2. Send the entire sum to my discount brokerage account, adding it to the meager, although
Foolishly-invested pile. Yes, Yes, I know! The 13 steps! But I'd be putting myself through the
agony of the disciplined process of paying back the debt so as to never get back in a hole again.

3. Some combination of the above. (sock some away, retire some debt)>>

Well, I would say that some of this depends on the interest rate(s) you're paying. My take, however, is:

1. Actually, you'd have peace of mind to show for it. (I don't know about you, but being in debt drives me NUTS!) And, if you cancel the cards (so you can't run 'em up again), you'll also have wonderful little bits of plastic confetti to throw around as you celebrate.

2. Not a bad idea. You could very well make significantly more through investments than you would save in interest by paying off the debt.

3. Definitely not a bad idea -- almost the best of both worlds.

Personally, I would go for option #1. But then again, peace of mind is my driving force in this, and I am young enough to have PLENTY of time to worry about investing for the future (and since I don't know your age or other concerns...).

Basically, it's up to you.

Good Luck!
Kaiti
Jedi in orbit
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