I have about 10K in credit card debt. I was planning to sell a rental house this summer and pay it off, but the house deal fell through. I have about 20K in stocks AND I have to refinance my house in August. Should I sell some of my stock to pay off my credit card debt? The interest on the cc debt varies from 0% on one to 18% on another card.
December 31st, 2009 at 11:46 pm
Pay off the debt….and here’s why..
Look at the interest you pay each month. By paying off the debt, that is the amount of money you just gave yourself as a RAISE, and you didnt have to work an extra minute for it…:O)….
December 31st, 2009 at 11:46 pm
Lets be honest the stock market isn’t moving anywhere fast at the moment. I.E.I invest in the banking sector and they have been non moving for months… and dont plan to and even if they do it wont be to an amount which still wont be good to buy in at.
So therefore i suggest you sell the absolute max you have to sell to cover your debts and then you still have some assets. or if you have to sell all take a look at investing in somewhere new in a years time as im sure there will be somewhere whos share are suffering due to the credit crunch.. as sad as it is to say.
December 31st, 2009 at 11:46 pm
You have to look at it this way. If your credit card rates vary from 0 to 18%, let’s be safe and take the average. Let’s say your interest rates are going to be 9% flat. Do you think you’ll make more than 9% in the stock market? It’s highly likely.
I would honestly pay off the debts, keep the additional 10k in the stock market, and become debt free. There’s nothing better than not owing anyone.
Good luck in your decision!