Cash Out Stock To Pay Off Debt?
Steven may cash out his stocks to pay off debt, but he's going to need to change his habits as well.
QUESTION: Steven has $37,000 in consumer debt and wants to know if he should cash out his single stocks to get rid of all his consumer debt.
ANSWER: If you cash out your stocks and don’t change your habits, you’re going to fall back into these old habits again. Make sure you’re committed to never buying anything with debt again.
You also need to ask yourself if you would go into debt to purchase stocks. The answer is no, so from now on you should always be debt free before investing.
Sell the stocks and get out of debt, but also get on a budget, work the baby steps, and change your financial habits.