Should I cash in my Amazon stock to pay off credit card debt?

Suppose you've got a zillion dollars in credit card debt, and you've got some stock in your investment account that equals a large chunk of the debt. What do you do? If you sell the stock it'll speed up your debt repayment plan by a whole lot. What do you do? Well, "it depends" on your circumstances. read more

The first consideration: debt repayment speed. Your credit card debt is probably costing you 20% in interest. Stocks on average grow at 11% a year. So, on average, you're coming out a loser by holding the investment and paying interest. The picture is even worse with other kinds of assets, because not all assets grow in value. read more

If you were also paying off your credit card debt using a minimum monthly payment of $125, you would be debt free in 5 years – but would have also paid the aforementioned $2,557 in interest to the credit card company. read more

It's smart to keep at least one month's living expenses, or $1,000 -- whichever is higher -- in your emergency savings account if you're paying off credit card debt. About a third of Americans said they would have to go into debt over a $1,000 emergency. read more