Use a Lump Sum to Pay Down Debt | Bangor Savings Bank

Use a Lump Sum to Pay Down Debt

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Use a Lump Sum to Pay Down Debt

If you've received a lump-sum payment from an inheritance, tax refund or commission off of a large sale, you might be wondering what the best use of that money is. One thing you should consider is paying off debt, whether it be a mortgage, auto loan or credit card debt. When you pay off debt, you're receiving a guaranteed return on your money -- you're saving the interest you would otherwise be paying on the loan. In addition to saving interest payment, you'll also repay the loan sooner, freeing up extra cash at the end.

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