'Anything is possible with any stock': My cousin has $8K in credit-card debt with 20% APR. She has $5K in stocks. Should she sell them to pay the credit card?

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'My cousin has $8,000 in credit-card debt with 20% APR. She has $5,000 in stocks. Should she sell them to pay the credit card?' The Moneyist has some advice:

I have been helping my cousin organize her finances and wanted to get your opinion on two issues:

I didn’t want to force the cousin to sell the stocks, so I posed the question: “Do you think that your stocks have the chance to appreciate more than 20% by next year?” She answered yes. “It’s highly unlikely that your cousin will have cherry picked her stocks in such a way that they will lead her to returns of 20% or more over the next year. She’s not Warren Buffett, after all, and even the “Oracle of Omaha” makes mistakes.”

The ideal solution: Transfer the balance to a new credit-card account with 0% interest for the first 15 or even 21 months, and to pay it off aggressively: Don’t order Starbucks; don’t go to restaurants; shop in bulk; and wherever possible, buy generic brands, which are usually cheaper even if some consumers don’t like how they taste. You can help her along the way, keeping her accountable.

 

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She needs to cut up her credit card - or make sure all her shares are in bank stocks and use the dividends to pay her debt. The only way to make any money from banks is to have shares in them 🐷 🐖 🐽

Lmao

Balance transfer account. Most have low if not zero intro rates.

No, all she has to do is call Biden admissions. They will forgive her debt but all they want in return is her vote.😂

Yes

Yes

Yes, unless she’s coming into some money soon, take the tax loss on the stocks and quit paying interest. Is this a real question?

Not today...

Yes wtf kinda question is this? She should pay off debts especially with that rate first before considering investing. No way she would be making 20%+ on stocks

Yes. She's not earning 20% in the stock market.

Lol…YES

Better to pay $1000 per month to retire the debt and use dividends on the stock portfolio to help.

Duh tard.

The answer is always yes.

100% yes

If you can’t answer that question there is no help for you 😆

Absolutely. Anyone willing to pay 20% interest probably isn't good at managing money.

Call Biden and ask for credit card forgiveness.

Dumb question

elonmusk I have seen this ad about 10 times in last 24 hrs. or so. Is this good or bad?

If her portfolio is red like most folks right now the answer is no

No fckn shit man

Ask Dave Ramsey

Yes, in my opinion, because the credit card debt is 20% interest, which is a rope around your neck, financially speaking.

Yes

If you want instant income, take that storage building out back of your house, sell all the content. Make it a rental apartment. Permanent income. 💕

be honest, your cousin is you isn't she?

Yes, but terrible financial decision making.

stop spamming

Keep in mind cap gains on stock sale if applicable.

yes

Unfortunately she should! She can not make 20 percent safely. And why risk it

Nah, tell her to go all in on 0DTE options problem solved 🤣

I would if I had more than 8k

Yes sell stock and pay that crazy Apr card

Pay it off first

Are you fn kidding me! Someone asked that but spelling and punctuate a thing 😂 gzus guys. Some are just doomed to modern slavery like what to do with these tards ya know.

It all depends on how much leftover income you have each month after paying your expenses. If you can afford to pay off the $8k in less than a year, don't sell the stocks. If you can't pay it off by then, sell the stocks. Don't get into debt; Unless the debt is used to earn $.

Open up a new credit card that allows balance transfers with an introductory 0% APR for 12 months. I’ll send you the invoice in the mail, also with 0% APR 😂 jk this one’s on the house!

Stocks can be used as collateral to get low interest loans that can pay off high interest loans… you must talk to high interest loaners to try to lower the interest by borrowing more capital at lower rates to cover the bad loan… stocks are the easiest assets to acquire…

Stop paying the credit cards throw them away screw the bank

Go get a second job

Balance transfer card with lower interest right?

Good job Joe..........................

Yes. Likely won’t achieve 20% return on stocks anytime soon. Pay the debt, then invest.

let me guess... she bought stocks with her credit card.

Hahahaha. If you have to ask you’re in trouble

Unless she can’t get a guaranteed 21+% return which means the answer is pay it down

Probably not worth that now after the time passed from submitting the question and getting a response.

This a joke?

Maybe not right away - she may be able to take a low interest loan enabling her to save on interest and lower her monthly payments. If she can be a little frugal, she could possibly pay down this loan a lot faster than she would have been able to pay the $8,000 debt.

Immediately she should pay and rest from savings

My step uncle's girlfriend yolo'd their savings and mortgage on terraluna last week and now they are homeless. Should they get married?

Yes.

Yes. I’m not even reading this story.

Yes. 100%. She can rebuilt wealth faster without debt.

Yes

Aspetta dell'altro...

Of course she should.

And actually kinda somewhat close to my situation I had to stop paying bills and just keep buying stocks. You pay bills you have no liquid hell day trade to pay bills but never just let the cash go

Nooooo don’t sell

Yeah sell it all. Buy but coin. Lose 40% in 1 week, sell that. Buy TSLA Calls right after earning expecting a continuation, lose 60%, sell that. Then have just enough to make a minimum monthly payment.

She probably only has 3500 in stocks after Friday

Asking for a cousin.

Ha. Classic… now back to making out with my sister

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