If you are lucky enough to find yourself with extra money these days, the first question is whether to invest it or pay off your debt. Ultimately, the decision depends on how much extra money you actually have, as well as your current personal situation.

If investing sounds like a good idea, you’ll want to take a hard look at the interest you might be making on your money. Is your investment considered safe or risky? Is a decent-size return all but guaranteed? You want to make sure that the amount of the return is high enough to justify your investment. If the odds are better that you’ll either remain steady or lose money, investing may not be worth it. On the other side, how much debt do you have? Will the extra money you have available make a difference if you put it towards your debt?

First, make sure that this truly is extra money. You don’t want to assume it is and hand it off either to an investment or your creditors and find out that you suddenly can’t pay your usual monthly bills. It’s too late at that point. Make sure that you also have an emergency savings, especially if you’re seriously considering the investment option. If you don’t, start building that up before you do anything else.

Compare how taxes will affect your extra money. The interest you gain on your investments is taxable, while the interest on some of your debts may be tax-deductible. Which one will benefit you more? If taxes would negate most of your gain, paying off your debt might be the way to go. But if your tax return would be significantly better if you could deduct interest charged to your debts, investing might be best. This is where the decision is extremely personalized: which direction will make you the most money?

For me, paying off debt seems the safest and easiest way to go. You can start by paying off your smallest debt. Then take the amount you were paying to that lender and add it to the minimum payment of your next smallest debt, and slowly but surely, you’ll be debt-free. But if you really know your way around the stock market and high-return investments, you could potentially make enough money to pay off most or all of your debt in one shot, so go with whichever idea is the most comfortable for you personally, the one you feel will make you feel more financially sound as you put your money to work for you.

See what USA Today had to say about whether or not you should invest or pay off debt.

Are you feeling the crushed by the recession where you live?  If taxes are rising and rents are increasing in your hometown, you might be wondering where the cheapest place to live is these days.  There are a few different things to consider, so let’s take a look.

Cheapest Place to Rent

It can be difficult to sell homes or even condos right now, so many owners have turned their properties into rental units.  If you’re searching in the right cities, you can find much more than a tiny apartment for a decent price.  According to msnbc.msn.com, Wichita, Kansas tops the list for the cheapest rent.  You can find a 600-square-foot unit with one bedroom, a washer and dryer, and a full kitchen for $470/month.  Plus, your rent includes golf and country club fees.

Oklahoma City comes in second at $490/month for a 900-square-foot unit with a gym on the property, followed by Tulsa, Oklahoma at $520/month for a 600-square-foot, one-bedroom unit.  Knoxville, Tennessee sounds appealing at $560/month with a one-bedroom unit that is surrounded by woods and includes a balcony, pool, tennis court, and playground.  Finally, Dayton, Ohio is fifth at $570/month for a 500-square-foot, one-bedroom unit on the lake, and a portion of your rent can go towards an eventual down payment if you decide to buy and own.

Cheapest Place to Buy a Home

If you’re looking to become a homeowner, the cheapest average home price is found in Minot, North Dakota: $132,300.  Out of the top ten cheapest home prices, the most expensive is Cadillac, Michigan at $151,530.  This list comes from Coldwell Banker, considering 2200-square-foot homes with four bedrooms and 2 ½ baths.  If that’s what you’re interested in and you want the cheapest prices available, you can also hover around Texas, Ohio, Kansas, and Oklahoma.  (Looks like the central region is coming out on top…)

Of course, you must also consider the cost of living in any city.  If you were to stumble upon a great deal in New York City, it might get overshadowed by taxes, insurance rates, interest rates, travel costs, etc.  If you don’t already live in one of the cheapest places and are considering moving, are there jobs available in your desired field?  Do they pay well enough to offset the cost of living?  Investigate and be sure that prices are not cheap simply because average salaries are low.

If you find a good deal that’s balanced out, take advantage of it.  You never know when prices might shoot up again, so make the move as soon as you can to stay ahead of it!

Sometimes it seems like things would be so much easier if you could just suspend paying for some of your bills for a few months…and without consequences.  Unfortunately, in most cases, you have to be facing some serious financial trouble in order to qualify.  If you are, one of the first payments you might look at is your student loan.  You might qualify for a deferment, but should you get one?

With a student loan deferment, your payments are suspended for a set period of time that your lender establishes.  If you have a subsidized Stafford loan, you also have the good fortune of suspended interest charges, so the loan amount will not increase during the time that you won’t be making payments.  However, most private student loans will continue to accrue interest, and that could increase the length of time that it will take you to pay off the loan.

Deferment Qualifications

There are a few different ways to qualify for a deferment.  First, as long as you are attending school at least part-time (and the definition of part-time may vary depending on your school and your specific loan), your payments can be deferred.  (In some cases, that’s a given until you graduate.)  After graduation, you might run into financial trouble, and you might qualify for an economic hardship or unemployment deferment.  For economic hardship, you must prove that the ratio of your payments versus your income is at a certain point determined by your lender.  To receive an unemployment deferment, you must show that you are actively seeking employment during the suspension period.

You could also qualify for a disability or family leave deferment if you are unable to work due to illness or a severe injury, if you are caring for your spouse or child that is experiencing an illness or injury, or if you are pregnant or taking care of your newborn and cannot attend work or school.  Your last option for qualification is a public service deferment—you are in the military, Peace Corps, or serving an approved tax-exempt organization as a volunteer.

Deferments are for Emergencies

Apart from the education deferment while you are still in school, all of these options require a substantial financial issue before you can be approved, so only consider a deferment when it is absolutely necessary.  It will be listed on your credit report, and the loan debt will still be included with your total debt if you apply for credit or other loans during the deferment.

If a deferment is a necessary option for you, make sure you understand all of the terms set forth by your particular lender, especially if they state that interest will still accrue in the meantime.  If so, consider making payments on that interest during the deferment.  Not only will it be more affordable than your entire monthly payment had been, but it will prevent the size of your loan from growing exponentially while you try to get your finances in order.  You don’t want find yourself worse off when the deferment is over.