No. of Recommendations: 0
I have investments dating back to 1996 and earlier in a few no-load funds (Oakmark and Invesco). Some have done well over the years, and others so-so. Unfortunately, I'm in a lot of credit card debt at the moment, and am wondering if I should cash in my investments now to eliminate it, or play the numbers (compounding interest on my investments vs. compounding interest on my credit cards). I don't have enough money to eliminate all my debt, but could probably wipe out 80-90% of it. Would it be foolish to erase all that compounding work in my favor to get rid of the debt, and then start over? FYI - I turned 30 a few months ago, my wife and I make about $65k/yr, expect more income in the following years, spend $1000/mo. on rent and my total debt is at about $25k. My investments have returned anywhere from 8.5% to 30% on average since inception. One fund did 95% this yr. Is this just a simple math question -- or are there deeper issues to consider? Thanks!
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.