2009-01-05

Answer Honestly

Sunday, as I was watching football, a thought struck me: "Answer honestly, would you prefer to clear you debt or have a 1 in 4 chance of winning $5 million?"

Okay, it was written on the back of my Molson CANADIAN bottle, but still, an interesting question.

Now, I would have to say, "Clear my debt." I just bought this condo, and owe over $300,000. Clean that off the books and I am a happy man. I know that statistically, you should choose the 25% chance at the $5 million, but for me, the upside of the clean slate outweighs the downside of the risk.

Now, a year ago when the only debt I had was that month's credit card charges, I would have had to roll the dice.


And what about you? Even if you don't comment, please take the poll over there -->

15 comments:

AngieS said...

Well, we purchased the building our business is in. (read: MORTGAGE) So, we would clear the debt. (Then, god willing, the $5 mil would follow shortly thereafter....

SouthernBelle said...

Clear debt, not even close to a competition.

I too know the pain of the Mortgage Diet.

; )

trogblog said...

Sounds like an episode of Deal or No Deal. I'd role the dice, when am I going to get better odds?

You know that Candian beer is like moonshine.

Alex Galvez said...

Take a 1 in 4 shot at wealth. You can always eat beans and rice and get out of debt in 18-24 months a la "Dave Ramsey Show" way!! SHOW ME THE MONEY

~E said...

Clear my debt...definitely!

I don't need 5 million, and if I didn't have to worry about college loans, car payments, credit card bills then what I make in a year will go a longer way than it does now.

Candy's daily Dandy said...

Clearing the debt is the sure thing! But you are right- the answer depends on your financial snapshot.

Sass said...

Clear the debt, hands down.

Then, I'd take the money I was using to pay the debt, put it in an account, and watch it accumulate to eventual wealth. Not wealth, really, but comfort.

I'm a geek, aren't I.

And that's why you heart me. ;)

Srg said...

With 2 mortgages, 2 car payments and a son in private school - I agree with the others. Clear the debt!

Alex Galvez said...

www.daveramsey.com Most people clear their debt within 12-24 months. Sure it will suck. Yes you may have to sell you new car and buy a beater. Yes you may have to bo to basic cable or dump your broadband. But having zero debt is nice.

Ms. Florida Transplant said...

I'm def rolling the dice on this one!

the iNDefatigable mjenks said...

No doubt. Clearing the debt. Even though that's the smart and safe answer, I'd always wonder what if, but I would clear the debt in a heartbeat.

Srg said...

PS - I nominated you for an award. Check out my blog for details.

Bacon Lady said...

Considering we are *this* close to being out of credit card debt and having no problem keeping up with our modest mortgage...I'm rolling the dice.

I LOVE to gamble.

Gwen said...

I'm not a gambler. Clear the debt.

I understand what Alex is saying but if I didn't win I'd be sick for a while.

I like a sure thing.

Scope said...

Polls are closed: 16 votes


Answer honestly, would you prefer to clear you debt or have a 1 in 4 chance of winning $5 million?

Clear the slate! 10 (62%)
Roll the dice! 6 (37%)