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.
- 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 113
- Thanks, everyone. I’m going to do the needful and sell the stock to pay all the debt off.