Sell stock to pay debt?

[reedda]

I have some stock from a recent Employee Stock Purchase. Current value is about $2600, which is more than my purchase price. I'm also expecting more stock in March or April (not employee stock purchase, this is "bonus" stock), then Employee Stock Purchase again in May.

General question is, should I sell the stock and use it to pay off debt? Or keep it as investment?

I have these credit cards (some of these will be paid off next week due to an unexpected $4200, being discussed in another thread):
1: $ 639 / 18.4%
2. $ 665 / 21.5%
3. $1012 / 22.9%
4. $1430 / 24.99%
5. $2432 / 23.99%
6. $2681 / 22.98%
7. %7026 / 19.24%

Other relevant debt is a 401(k) loan with a balance of about $2400 and a car loan with a balance of about $2700.

I have other debt, but the above is most relevant I think (other debt would be mortgage, student loans too much to pay off now, another large car loan at low interest rate, another stupid 401(k) loan too large to pay off now...)

Thanks!

[reedda]

#4 and #5 on that list are paid (YAY!).

Feels so good to pay those off, I'm leaning towards selling the stock to pay off some more...if I sell it at current price, I could pay off cards 1, 2 & 3

[jpg7n16]

Goodness man, that's a ton of interest you're having to pay.

The long term historical average for the stock market (the best performing asset class of all time) is 7-11%. Do you feel that your investments will on average return more than what you're being charged?


If it were me, I'd sell just about anything I could to pay off that debt. Stocks, bonds, mutual funds, stereos, etc. (Except -- do not touch any retirement accounts though -- no IRAs or 401ks, leave them alone)

Even pay an interest penalty on a CD to do it. You'll save more than the penalty would ever cost.


And then search for a good 0% balance transfer offer.

Google: 0 balance transfer

[reedda]

Sold stock and will have ~2600 when it settles.

Credit cards again:
1: $ 639 / 18.4%
2. $ 665 / 21.5%
3. $1012 / 22.9%
4. $0000 / 24.99% <-----GONE! YAY!
5. $0000 / 23.99% <-----GONE! YAY!
6. $2681 / 22.98%
7. $7026 / 19.24%

I'm leaning towards paying #2 and #3 immediately, using some to round out the emergency fund I'm putting together and the remainder for (a lean) Christmas...

Lifestyle / habit change already underway...I wouldn't be on this site otherwise Can't go back in time, so I just have to plow ahead and fix what I've done

Thanks for all the help and advice, on this thread and the other one. I've been in a great mood this week

[BuckyBadger]

From the info here and in your blog, can you sell the cars (both of them if you're in the black on the one you only owe $2,700 on) and get more reasonable vehicles? You can find two cars that are safe and reliable (although maybe not fancy) for less than half of the cost of your $18,000 car loans.

[ValQue]

Congratulations on paying off those two cards! If you're really focused on paying off the other ones with the smaller balances, I say go for it. With high interest rates they will grow if you don't pay them off. Good luck tackling your other debt.