Hi Everyone, I am very confused and have a few ideas and have read some articles that tell me too do different things with my tax return: Pay off the credit card: a credit card with 12% interest that i have fully maxed out. (this would in-pact on my cash-flow positively approx 250 per month in payments) but i am concerned i may use it as a clutch in the future. Buy shares: Buy some blue chip shares set them too dividend re-invest and let them compound. (the share market is undervalued and will go back up long term). (probably buy the banks they are not going anywhere). I feel this may also reinforce my investment mindset. Renovate: Replace the flooring in an investment property and put the rent up $10pw, (no guarantee). What would you do???? Thanks Heaps Jeffery
Pay off the credit card. No other action will provide the returns that this will offer. 12% return after tax guaranteed? Yes, thank you! If you are concerned about your credit card debt blowing out again in the future - ditch the credit card. Get a debit card instead. That way you're only ever spending money you already have. If you can't afford not to have a credit card - try spending less. Don't bother investing anywhere else until you have your personal debt under control. This is non-productive debt (also known as "bad debt"), and will suck the life out of your finances and prevent you from getting ahead.
thanks heaps Thanks for this, this is what i have done and now using it more productively with the offset account with the interest free periods hopping it turns out too be a good strategy.
