It's funny sometimes how you can watch these little wavelets go around the financial community. It's sort of like the waves that get started at sporting events except in this case it's writers picking up on each others' stories and taking a topic a little further, or off in another direction.

I recently saw a little wave of articles asking and answering the question about what to do with extra money:

Given some amount of extra money, should I invest that money, or would it be better to pay down debt?

I just couldn't jump on this one because to me it always seemed so obvious. The best strategy is the one that leaves you with more money in the end. The problem is only a little complicated because all debts are not treat equally, just like not all income is treated equally, in the eyes of the IRS. The answer relies on how the interest paid and the income earned are treated when it comes to taxes.

That's about as far as I'll advance this topic. It's just not as complicated as it might seem when you first think about it. If you want to try out some sample calculations for yourself, I found a great little on line calculator at EquiFax, the credit report people. Give it a try and see what you think.

And if this is somehow more complicated than I think it is, let me know, OK?