Should I use a lump sum to pay down my debt?

If you have 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 are receiving a guaranteed return on your money -- the amount of interest you would otherwise be paying on any outstanding balance. Depending on the type of the loan, and especially for credit cards, that return might be greater than anything you could receive by investing the money. In addition to saving interest payment, you will also repay the loan sooner, freeing up extra cash at the end.

Calculations provided by Fintactix.
  • Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

DuPage Credit Union personal loan benefits

You can consolidate your debt with a personal loan from DuPage Credit Union. 

  • Low rates and no fees. No origination or pre-payment fees. No fees as long as you pay on time.
  • Reduce your rate with auto pay. Sign up for auto pay and reduce your rate by .25%.¹
  • No payment for first 90 days. Defer your first payment for 90 days.²
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  • Reduce your rate by .25% when you sign up to make your loan payments through Auto Pay. Reduce your rate subject to change without notice. Cannot be combined with any other offers. Must be a Member in good standing.

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  • First payment may be deferred up to 90 days. Interest continues to accrue during deferred payment period.

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