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Well...I guess I didn't quite spell things out like I should have to everyone :o) The money was written as a check to my husband and I. My father told us that this money was to ultimately be used for her education but that it is up to *us* to invest it in any appropriate way that we deem necessary. I have asked him (my father)COUNTLESS! times how because I know so little. I will not give me advice because he knows very little himself. Thus, it is up to us!

The reason the money has been sitting in a savings account is because we don't know where to put it. Until I started looking around this site, I didn't even know what an IRA was. I don't even think hubby knows what that is either:o). We are in our middle twenties and know very very little about investments because these past two years have been our firsts in the *real* world(out of the college life) Our first plan is that we will establish an educational IRA for her. It may only be 500 dollars but it adds up very fast.

My point I made about paying down the cards is because we have been sending about 500-800 dollars a month to our credit cards for the past year. This is budgeted into our budget. Since this is a part of our monthly allocation, I figure if we send a lump sum to credit cards, then we won't pay the finance charges and turn it around into a gain instead. Our debt is mainly from college and a big move to this city and of course, when we bought our house, we need basic necessities (such as lawnmower etc). Over time, the amount grew as many of you can understand. Anyhow, we don't charge on them anymore. We used to have a card that was jacked up to 23%(!) so we just recently transfered that balance to the 1.9. (Foolish move I believe :o) Like many of you said, after I evaluated how low that is, we may just leave that there and of course, pay off the rest of the other balances. That is what we are doing currently.

One thing though that we don't have is a power struggle over this money. The problem though, is that it has been told to me (by him) that it is up to me how we invest this. This is a large responsibility and I want to do it together. But it is like the blind leading the blind *hahah*. I just thought that this may be one way out of the whole and have within one year the balance back.

Now, taking in all of the wonderful replies that I got, I do agree with many of you and with my husband. I am afraid to touch the money because we believe in our hearts that it is for her education only. But when I read and talk to others, they tell me it is silly to have money sitting in a savings account getting *some* interest and at the same time paying 12 and 14% on credit cards. As if we were to pay off that card, we would essentially be getting a 12-14% gain on our money.

The thing is, is that we have been very very good about not using the credit card in the past 9 months. We never ever skip making payments and the money we send is 2-3times the minimum balance. Our old balances used to be over 11,000...we have successfully paid them down to 8,000 but gee wiz...the interest kills us!

Anyhow, I thank you all for your advice. I am actually happy that you all didn't agree with me because it puts his view into perspective. He just gets upset (as do I!) that we are so in debt.

Now, as far is leaving the money alone and investing it...well that is leaving me where I began :o) I know the educational IRA is good but I'm so clueless about stocks and mutual funds and even after reading some of the things on this site, I still feel lost. I will, however, take the advice of many of you and re-analyze my numbers since we are paying them down so fast anyway. Maybe the total outcome wouldn't be so different. I jsut worry about when the 1.9 turns into a pumpkin of 12.9 after 6months...

Thanks again,

Jenn

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