Canadian ETF, Mutual Fund, and RRSP Advice
EfficientMarket.ca

Authored by: martingale on Tuesday, December 21 2004 @ 07:54 AM EST

I can't help you answer the question of whether she should go to school, or how to insure against the risk that she won't complete, that is a life-choice that will have to be me made outside of the finance world. I can make this recommendation: You've calculated that your credit card debt is "unimportant", but at the same time, you say you have a cash flow problem. Credit card debt is probably costing you 17-18% interest, and even if it is only $5000, that is $800 or $900 of your money that you are paying for nothing. It sounds to me like you could use that money.

You have several options here to reduce your monthly charges. First, try your bank, and see whether they will allow you to convert your credit card debt to a loan of some sort--that would likely cut your interest in half at least, saving you hundreds of dollars. If that fails call the credit card company and demand a lower interest rate--often they will comply. If they won't give you a lower rate call other credit card companies and ask whether they would offer you a lower rate if you transfered your balance to them.

They key to your well being will be to control your expenses, and move your debts as much as possible to low-interest instruments.