Sell off stock to be debt-free???

Adobe Coco Puff
Feb 11 17 Comments

I have stock vesting soon that was part of my sign-on package. I was thinking of selling it to pay off remaining credit card debt and a loan my husband and I share. Our stock is doing so well, so I’m wondering if it’s a bad financial decision to do so. Interest rate on the debt is 6.5% and 8%, respectively.

Our main goal for doing this is to just have our mortgage payment as our only debt.

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TOP 17 Comments
  • Workday / Eng efficient
    Definitely sell stock to pay that insane interest rate
    Feb 11 0
  • Amazon / Eng Troll Food
    Credit card debt? Yes, sell to pay them off and don't get on again.
    Feb 11 0
  • Intel bxsnlns
    No debt > stocks
    Feb 11 0
  • LinkedIn / Eng bored🐷
    You have to make ~11% return on your stocks to compensate for the 8% interest rate because of the tax you pay on gains.

    Definitely sell and pay off your debt.
    Feb 11 0
  • Amazon heyyeh
    Absolutely pay off credit card debt. Pay it off and never over spend again.

    Leaving aside discussion of gaming the 0% deals sometimes offered, you should never run up debt on a credit card.
    Feb 11 0
  • VMware / Eng
    PJLD43

    VMware Eng

    BIO
    Sr MTS.
    PJLD43more
    What is the growth on the stocks?
    Feb 11 2
    • Amazon heyyeh
      Long run growth on stocks is between 7 and 10 percent but it's highly variable and can range between -25% and +50%.

      Paying off debt is a sure "return" of in this case 6 to 8%. From a risk/return perspective you simply cannot find a better investment than paying off credit card debt.
      Feb 11
    • Amazon / Eng Troll Food
      Vanguard said expect 5% in the future vs the past of 8%
      Feb 11
  • Oracle not_larry
    Sell sell sell.
    Feb 11 0
  • Amazon / Eng
    UTukMyJerb

    Amazon Eng

    PRE
    Electronic Arts
    UTukMyJerbmore
    OP stock could go up or down, but that debt will have only one direction if you don't pay it off.
    Feb 11 0
  • Bloomberg / Other OFFSlayer
    Wtf is that rate
    In any other situation nowadays you're better off with debt and return opportunities but you managed to find the exception
    Feb 11 0
  • Adobe Coco Puff
    OP
    Thanks, everyone. I’m going to do the needful and sell the stock to pay all the debt off.
    Feb 11 1
    • Intel HRC
      Please revert back once needful is done.
      Feb 11
  • Oracle
    functi

    Oracle

    PRE
    Amazon, Microsoft, 500 Startups
    functimore
    Sad to hear the question. You need to get off the crazy interest rate debt.
    Feb 11 0
  • New YEDF60
    Absolutely do this.
    Feb 11 0
  • Facebook liam
    6-8% guaranteed tax free? Its insane, pay your debt.
    Feb 11 0
  • Apple / Eng MojaveX
    Why wouldn’t you?
    Feb 11 0

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