What to do with $1,000 now
From paying down high interest debt to investing in a tax free savings account, here's what to do with $1,000 now.
Whether it comes in the form of a tax refund, or a gift from a generous relative, a $1,000 windfall can be very helpful, provided it is used responsibly. This article from Moneysense explores the different ways $1,000 can help improve your financial situation.
Paying off high interest debt should be a top priority when obtaining a windfall like this, and can prove even more lucrative than saving or investing. Taking credit card debt, for instance, if only the minimum monthly payment is made, the interest on a credit card with a balance of $1,200 and an interest rate of 19% can end up being almost as much as was originally owed. However, if the $1,000 windfall is applied to this debt, the remainder can easily be paid in a matter of months.
Another excellent way to make use of "found" money is to apply it as a lump sum payment to your mortgage. Most lenders will allow additional payments of a certain percentage over and above regular payments without incurring a penalty. Making extra payments is a good way to start towards mortgage freedom.