Need Advise.....Please Help....

I just received an 80K inheritance. I have a car loan 8K (7%), 1st MTG 37K (6%)and HELOC that just ended it's 5yr draw @ 23K (5%). I plan to pay all these off and open a new HELOC with a zero balance as a safety net as like everyone else, job security is at a premium. I do that or sit on the cash....I would really like to p/o the car & home...What do you think? I live alone and would appreciate your input. Thank you.

Tiger,

Financial decisions are never made in a vacuum. In other words, making a choice to pay off a house or car is not independent of your decision to purchase insurance or save for your retirement. So as a suggestion, it would suit you well to meet with an advisor regarding your personal financial situation rather than listing a few (of the many) details needed to make an educated financial decision.

I know that this was not the answer you were searching for, but knowing what I know about finance, I do believe this to be the best answer.

-Joe

Paying off the debt could be a good move. If inflation hits then paying off debt might be bad move.

The first advice you received (no financial decision can be made in a vacuum) was good advice.

If you used 68k to pay off debts, what would you do with the other 12k?
Will you owe taxes on the 80k?
Do you have a comprehensive financial plan which accounts for savings, retirement, spending and provides details for how much income goes to savings, what your retirement asset allocation is and what your budget is to govern spending?

Without the plan in place, it is tough to see if any financial move is a good move.

Well its a good time to pay off for your debts first. As now your the resources so paying it off will be a good option.

For better diversifying your finances that you have inherited in paying off debts and investing for retirement, i would suggest you to take an advice from a good and reliable consultant. But certainly some part of it should be paid towards clearing some or full of your debts.