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.
Credit card debt? Yes, sell to pay them off and don't get on again.
No debt > stocks
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.
What is the growth on the stocks?
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.
Vanguard said expect 5% in the future vs the past of 8%
Sell sell sell.
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.
6-8% guaranteed tax free? Its insane, pay your debt.
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
Absolutely do this.
Definitely sell stock to pay that insane interest rate