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Author: dsemmler Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308686  
Subject: Re: $5000 at 4.9% Date: 9/4/2003 7:03 PM
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So, I have a postition in a certain stock worth 10K right now from ESPP shares. I also have $5000 in credit card debt, on one card, with a $22,000 limit. I'm way above water on this in terms of income, and if I were disciplined about it I could pay it off in about 3 months.

If it were me, I would not sell the stock to pay the debt. However, I would evaluate my spending to see what I could do to pay the debt off as soon as possible to reduce the interest paid.

For comparison, I have been doing something similar with my student loans and the loan on my Harley. Because the interest rates are relatively low (2.26% on the student loans and 5.9% on the Harley loan), I was directing more funds to savings than towards paying this debt.

However, over the last few months I have begun getting the itch to eliminate the Harley loan and I have been sending a double payment every month. This still allows me to send money to my savings and required me to cut a little of the excess areas in my budget but it is worth it.

FWIW, I would recommend doing what you can to pay the CC debt over the next 3 months and keep the stock where it is for the time being.

dt
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