What to do with tax return?

[dubhead]

First year out of school so I am getting a decent sized tax return(~6k) I was wondering what the financial gurus of beyond think would be the best utilization of this money. My choices in order of what I'm thinking are:

1.Stick in RRSP and see another decent return next year.
2.Pay off remaining VISA (~6k)
3.Use for down payment on new car
4.Pay down student loans

[bmeier]

Pay off your debt.

[woodywoodford]

Definitely not the car. Pay off the visa and chop it up.

[killramos]

Pay off highest interest bearing account.

That being said if you are buying the car anyways use it for that. Car loan is likely the highest interest.

[davidI]

Pay off your Visa. The fact you even have that much visa debt and you're considering an RRSP or downpayment on a new car is scary.

[ExtraSlow]

Pay the Visa 100% for sure.
Anyone with credit card debt should not be paying down student loans or investing in RRSP.

[Asian_defender]

This beyond here, go out and buy a car

[BrknFngrs]

Originally posted by ExtraSlow
Pay the Visa 100% for sure.
Anyone with credit card debt should not be paying down student loans or investing in RRSP.

Agreed completely and I wouldn't be looking at a car loan until you've cleaned up the visa either.

[rob the knob]

casino first, than take winnings for 1,2,3,4

[Disoblige]

No brainer there, VISA.

[EF9 Sedan]

Originally posted by rob the knob
casino first, than take winnings for 1,2,3,4

[403ep3]

lol considering credit cards have stupid interest rates this is a no-brainer.

There's really only two choices for you:

1. Visa
2. Student loans

[J.M.]

Pay off the Visa.

[dubhead]

Originally posted by rob the knob
casino first, than take winnings for 1,2,3,4

Now why didn't I think of that.

Well VISA it is which was the original plan. My thinking behind RRSP contribution is it would net me ~$2000 in taxes back next year + gains in RRSP, where as the VISA would cost me ~$1000 in interest over the year if left as is, which would not be the case. So if I left it completely as is I would come out $1000 on top if I put it in RRSP.

[Disoblige]

It would cost you $1000 in interest let's say, but then you still have that VISA debt and money stuck in your RRSP. So I don't think you'd come out ahead unless you're planning to pay off that VISA within the year.

[pheoxs]

Originally posted by dubhead


Now why didn't I think of that.

Well VISA it is which was the original plan. My thinking behind RRSP contribution is it would net me ~$2000 in taxes back next year + gains in RRSP, where as the VISA would cost me ~$1000 in interest over the year if left as is, which would not be the case. So if I left it completely as is I would come out $1000 on top if I put it in RRSP.

Rrsp contribution is only a one time thing. Use it when you're making more money.

Pay off the credit card, don't waste the money paying 20% interest. This shouldn't even be a question.

[dubhead]

Figure i had it framed up wrong. On the VISA it goes

[A790]

Originally posted by dubhead
Figure i had it framed up wrong. On the VISA it goes

Good call.

[guessboi]

+1 Visa No doubt.