Advice on Selling Stocks to Pay off Credit Card Debt

First, make sure you have enough money readily available (cash, CDs, sometimes even unused lines of credit) to pay your expenses for 3-6 months (the longer it's likely to take to replace your income, the more you need to have available). You state in your question that you enough money to pay off the credit card debt and you also that you will have some money remaining. I suggest that you as much as you need to pay off the credit cards and then save the rest.

The only investment account you should leave money in when you have a credit card debt balance is your retirement account, such as a 401k or IRA. The reason is simple; you'll end up with more money if you take that money out of the stock market and put it into your debt. With the stock market, you can only reasonably expect to make around 9%-15% per year, based on the historical performance of the market. When you pay down your debt, you are guaranteed to save yourself whatever interest rate you are paying. Therefore, if your choice is maybe 9%-15% gained on the stock market, or paying off your 14%-29% APR credit card debt, go with the guaranteed win and pay off the card.

For more information onthe Bills.com  debt help options page.

I hope the information provided helps you Find. Learn. Save.

Best,

Bill

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