Money

Sell off stock to be debt-free???

Adobe Coco Puff
Feb 11

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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  • Workday / Engefficient
    Definitely sell stock to pay that insane interest rate
    Feb 110
  • Amazon / EngTroll Food
    Credit card debt? Yes, sell to pay them off and don't get on again.
    Feb 110
  • Intel bxsnlns
    No debt > stocks
    Feb 110
  • LinkedIn / Engbored🐷
    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 110
  • 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 110
  • VMware / Eng
    PJLD43

    VMwareEng

    BIO
    Sr MTS.
    PJLD43more
    What is the growth on the stocks?
    Feb 112
    • 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 / EngTroll Food
      Vanguard said expect 5% in the future vs the past of 8%
      Feb 11
  • Oracle not_larry
    Sell sell sell.
    Feb 110
  • Amazon / Eng
    UTukMyJerb

    AmazonEng

    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 110
  • Bloomberg / OtherOFFSlayer
    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 110
  • Adobe Coco Puff
    OP
    Thanks, everyone. I’m going to do the needful and sell the stock to pay all the debt off.
    Feb 111
    • 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 110
  • New YEDF60
    Absolutely do this.
    Feb 110
  • Facebook liam
    6-8% guaranteed tax free? Its insane, pay your debt.
    Feb 110
  • Apple / EngMojaveX
    Why wouldn’t you?
    Feb 110

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