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

    VMware Eng

    Sr MTS.
    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

    Amazon Eng

    Electronic Arts
    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
    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


    Amazon, Microsoft, 500 Startups
    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