I'm sure most of you know that last year my wife and I bought a house. While we love the house the unfortunate thing is that we went from renting a fairly small house to owning a much larger one. One of the hidden costs in making that move was that we didn't have nearly enough furniture to really utilize our new house. So we made a trip down to the local furniture store and picked up a new living room and bedroom set and went to Sears to purchase a new refrigerator.
Since we were able to purchase everything at 0% interest we weren't in a big hurry to pay off the debt especially while the markets were still offering solid values. We figured why throw extra money towards our debt, especially at 0%, when that's such an easy hurdle to beat through investing. Mr. Market has continued his relentless march higher and it's been doubly bad because I'm sitting on a bunch of cash right now, much more than I'd like to. That's why I've been making a few more purchases over the last couple of weeks even though they haven't been at the most ideal valuations.
I had my wife tally up our total debts and we have about $3,000 left. Two of them should be gone with their next payments and we'll be left with about $2,500 on one more account. At this point with the markets not offering a whole lot of value I'm leaning towards paying off the debts to get rid of them and help improve our cash flow. It will only take about 10% of our capital waiting to be invested to go on and pay off the debts. So my question to you is, should we pay off the rest of the debts and be done with them or continue to look for opportunities to invest? After all 0% isn't exactly a high hurdle to beat.