Dave Says: Sell stock to get out of debt?
12-10-2022
Share This article
Dear Dave,
I have about $5,000 in an individual stock and $6,000 in debt. Should I sell the stock and pay off the debt?
- Leann
Dear Leann,
Let’s look at it this way. Pretend you only had $1,000 in debt, and you had a credit card with a $5,000 open line of credit. Would you go borrow $5,000 on it to buy that stock? Of course not. It’s the same kind of thing in reverse.
If I woke up in your shoes tomorrow morning, I’d have only $1,000 in debt before the coffee started brewing. Sell the stock, and pay off the $5,000. Then, I’d formulate a plan, get on a budget and fix that thing in my life called overspending so that I could knock out the remaining debt in no time and start building wealth!
- Dave
Share This article