Pay off credit cards or keep in mutual fund?

I have about double the amount of money in a mutual fund than I do in credit card debt. Should I take out the money I need to pay off the credit cards then the money i was paying on the credit cards each month put it back in the mutual fund? Or just keep the money where it is at and keep trying to pay the credit cards off?

The insterest rate on the cards are high 19-23%. I know at the end of the year we pay some kind of taxes on the mutual fund.

In your case, it's a no brainer - pay off the credit card debt before you start investing it. Those interest rates are so high (19-20%) that there is no way you can make a higher return. Your best investment right now is to lower your debt. You can see a detailed explanation of how to make this decision here, which might help you:

http://www.freethedrones.com/blog/2006/0...

One other thing you should think about, though: are you just putting this into a mutual fund or into a 401(k)? If you are putting it in your 401(k), you don't pay taxes on it - so that's an instant 20-30% return on your investment by saving that money. That's higher than paying off your credit cards and a better idea.

How much money we talking because the sale will have to be reported on your tax return? But if you are paying high interest rates and pay off the debt you are saving lots too.

It would be worth my peace of mind to sell and just pay off the debt then pay myself back, but put the figures to a calculator and see how much it might cost you to do so.

I would suggest that you pay off the credit cards as soon you can. Make sure that you pay each months bill son time. That will benefit you.

Keeping the money in your mutual fund assuming that it is good and does not go down provides you with a valuable asset and the opportunity to use that money or part of it as needed instead of using your credit cards.

What you need to know really is what the tax implications are of taking the money out of the mutual fund. If it's looking nearly impossible to pay off the CC without doing something extra, it may be worthwhile and especially if the interest rates are high. Have you moved the money around to get the lowest interest charge possible through balance transfer offers? Called the CC company and asked to make sure you are getting the lowest rate possible? The whole ball-game is interest rates. If you do take the money out of the mutual fund, make sure you keep some extra to pay any tax penalty at the end of the year.

Depends on the interest rate on the credit card and a reasonable return rate on the mutual fund. For example, if you are paying over 10 percent interest on the credit card and expect to get a 10 percent return on your mutual fund, then it is still good to pay off the credit card because of the tax implications.

Just compare the interest rates and "reasonable" return rate minus taxes on the mutual fund and make decision accordingly.

Also, the mutual fund can lose money, so I would rather pay off the credit card.

The No.1 rule of investing : NEVER borrow in order to invest.

Interest on debt is certain, profits from investments are only probable.

Without any other info - Pay off the high interest debt first.

I would suggest paying off your credit cards. Take the money that you would have paid anyway toward your credit card balance and apply that to your investment. It won't be long till you are back to where you started, this time with no debt paralleling your investing. It's always best to be debt free when it comes to credit cards.

INvest in MF: hese funds are a type of security that can be traded on the stock market, allowing shareholders to buy and sell shares in the funds. The revenue generated by purchase of shares is used by mutual fund manager to buy more shares of specific stocks, bonds, and other market securities and money market instruments.