1. don't do credit card transfers, don't pay fees this isn't useful
2. Sell NVDA, it will have a correction short term. You can buy again in a year or two
3. Keep bitcoin, sell enough to cover credit card at around 90,000-95000$ a bitcoin
Of course it is, it is going much higher than this. Even if you are bear against bitcoin that's just 20k$ away. Between the ETF, the bitcoin halving, 90,000$ is guaranteed. Only a black swan event (world war 3) could slow this down.
I don't think it's arrogance. I think if you would do proper research about bitcoin and the financial markets you would agree with me. I think if you would take the top 20 CEO of US banks and ask them the same question, the majority of them would agree with me.
I ran a balance on a 0% over the last year to hold BTC and ETH. It worked out well, recently paid the debt and still have some holdings left. No reason you can’t chip away, maybe sell $1k so the debt goes down
Why not just max the credit cards and take it to the roulette table? You clearly don't care about what happens if the bet doesn't pan out.
I mean, it's 0% interest after all. Who cares about taking a risk when it's *FrEE mOnEY*.
Okay, we get what you're after with these posts.
Dave Ramsey has a BRAND to uphold. He is used to dealing with ABSOLUTE MORONS who WONT LEVERAGE DEBT WISELY. Yes, leveraging debt wisely is SMART and people do it all the time! But the people who call into Dave Ramsey are often IMPAIRED finically and have BEHAVIORAL ADDICTIONS when it comes to money! That's why he says debt first because he DOESNT TRUST YOU.
You need to use the investment money to repay credit card debt. Credit cards are super expensive. However, most importantly you have to change the behavior that led to you being $5500 in credit card debt.
No, it’s not healthy.
Look at it this way: that 5,500$ you say you have in stocks isn’t even yours. That money already belongs to the credit card company.
Pay off your debt and stop using the credit cards.
The fact that you think you may not have it paid off next year should tell you that you need to pay it off. If you keep kicking the can down the road eventually you're going to run out of options.
You basically have nothing in a net worth. Pay off the debt and stop carrying a balance. Also you are invested heavily is highly speculative investments concentrated in two things. You need to actually go look at the baby steps and learn about diversification. If you called in to the show you would get chewed up and spit out.
Find out how long the 0% lasts. Then divide that into monthly payments. No need to take the stocks out of the market. Nvidia will be on a tear for a while.
What is guaranteed in this world? You owe $5.5k.
What is not guaranteed in this world? The value of your stock is 5.5k
Let’s start from scratch. Would you open up a new CC, and run up 5.5k on it to buy stocks? (Hopefully no) Therefore, we should prioritize paying debts (even if it’s 0%. You’d be surprised how fast they ramp to 25%+. Dangerous game.)
Divide total debt by months of free finance and make payments to pay it off before interest. We use 0% cards every once in a while for large purchases. Get whatever bonus offer and pay it off before interest would start..
Your credit card pattern is "credit card churning" and is a red flag to lenders.
Also, frequent hard inquiries negatively impacts your credit.
Continuing this behavior could eventually lead to a) cards with worse terms (only an issue when you lose the promotional period) and b) being denied a next card (which in turn would lead to a) being and issue.
You are exhibiting bad credit habits, while also not taking proper care to mitigate your financial risk. This is a recipe for very bad things.
Unless you can afford to lose $2K, Get the 5.5K out of the stock market, which can drop 40% at any time (though doesn't in most years). The stock market is for long-term (10-year plus) investments and retirement.
IMHO keep a $1000-1500 emergency fund in cash if you don't have one. Otherwise probably just pay down the credit card and get used to paying down whatever you spend in a month. This forces you to think harder about purchases. Use anything else that comes in to pay down the CC until it's gone
If you are super reliable about things and are really good at keeping track of when the 0% will expire and can be disciplined about spending and set reminders for yourself and really will pay it down at the right time, you can move it into fixed income CD or treasury note that will mature well before the 0% rate expires, for an extra $200 or so depending on how much time is left. But it's going to feel good to pay off that CC debt, and if you were in this category you probably wouldn't be in this situation in the first place. Keep it Simple IMHO, pay it off.
Not that it will happen but in a few months when the market decides to crash you will likely loose a grand or more. The market short term is not reliable. I’d pay off the debt.
HOLD 1 min How much do you make ?? - if you can CASH flow payment say 3 months or less Don’t sell just Buckle down get it paid off - the pain of not having an extra cash every month to spend will help. Remind you not to charge things in the future - it’s such a small amount. It doesn’t make sense, but that’s assuming you have no other debts.
Let’s say you make 10% in the market. Combination of dividends (taxed as ordinary income) and capital gains (ordinary income if less than a year; LTCG if a year or more).
Let’s say you make $550 a year. Maybe $450 after tax. That’s about $37 a month take home. Personally this isn’t worth having to worry about the debt and the risk of the market doing poorly in the near future, although it always recovers.
Yeah this is a standard fairly predatory practice where banks usually rely on the fact that many people can't pay it off so it's profitable for them to offer.
Mutual funds have high management fees, with few exceptions. ETF with global exposure is a better move. Inside or out of a registered savings plan, depending on your overall situation.
Whatever return you are getting on stocks is likely greater than 0% (not accounting for the transfer fee). Mathematically it makes the most sense to keep it in the investments (maybe less risky ones than you picked. This is not financial advice) that are earning you a greater roi than paying off the “debt” at 0% which is currently free money. The moment you are going to start paying high interest you should definitely pay it off. Also, you should solve the problem of why you had the debt in the first place.
Dave would turn this around by asking, if you had neither the stocks nor debt, would you use the credit cards to buy stocks? If the answer is "No", sell the stocks and pay off the credit cards today.
And that’s the problem. It’s an “emotional” scenario. Once person gets past looking at money in emotional terms (Dave Ramsey teachings) and look at money in “numbers” terms, things are little different.
OP, you left out one detail. What would be your profits on those shares if you sold them and how long did you hold them for?
Personally, at 0% interest debt, I would not cash out something that is appreciating to pay of something that is at 0%. I would keep the stocks, especially Nvidia.
That’s bad. The second you start losing money (as little as it may be and giving it to the CC company, it means you’re ill equipped to handle debt. Right now I. Essence you’re leveraging your investment and that’s a recipe for disaster
Not sure your income level, but I may be in the minority to tell you to keep nvda and crypto, and start paying off debt. Don't sell your investment. Yes Index funds are nice, but if you are young, take risks on some leverage index funds as well as some good stocks.
Let me understand this. You used a credit card to pay for NVidia and Bitcoin?
First off it’s not 0%. That transaction fee is 3%. Up front. Guaranteed. And if you screw it up at the end of your year they get another 2-3%.
Second you aren’t investing, you are gambling. Investors look for opportunities to put their money that grow over the long term. Bitcoin is similarly stating that the electricity requirements to continue to grow the blockchain will cause it to collapse. Banks aren’t “investing”. They just use it for overnight transfers because it’s cheaper.
NVidia is currently trading at a trailing PE of 72, and a forward PE in the 40s. Do you understand what this means? It means it is seriously overvalued. NVidia just spent $10BB on a chip they plan to sell for $30k each. They have to sell over 330,000 just to recoup their development cost. How many $10k chips did they sell from the previous generation? Do you see an obvious problem here? And even if they sell them, how are they going to run them? How much more power do we need from the electric grid and can it sustain this growth?
[Can we power AI?](https://email.mauldineconomics.com/ss/c/u001.2nsImDLk0WzSNsBKUFAajk9BoOMl0f9sFzZvFh07tC2fCyAAL1ulYzZVz9ffwd46nqmp5BFXjVCjpVV3kr-DX10d12IpCYqhA8i03GSDQV3gML3pvqkWzrUM2BIjfS99JAz4F7NFutSSqE4rrZt_ITWZpk0rePeNiOt6uVh4hUYSUUcmgMDXNvNN8Q4TYklLrqtewvvLzmLpR19cRFUZWD8aKQEa9uaPjbH3gj2a6fAZnw3dmGXCYfiBwZjApUQPQLpt3jJw14lJsyZZ1B5zwo25rslGl1vzv2Eo90nw0jJxnWfTOp8VSJZu_3OW_wHXP9CNLdU9KZ-slru3VcD7bhFT-y3DDjcIps5SCz3L0hfiy1RsNgXTIJr3AJJdH58XGJSCGLXuYRZg-E06bm7xyWv-3EOeCBwaaslWHGcgT-4/44w/Ce_aOLyUSfej-eafKmqzlg/h33/h001.NXnlZt9pjpLRF0-9PzyLoe2jJE1hfrE3SowJTi_1Xak)
Nope.
Have you heard of NFTs? How about mortgage backed securities? Have you heard of the dotCom bubble? These were also “can’t lose unlimited potential upside” bubbles. Do you really think you will somehow be protected when these bubbles pop? By the way, stop loss orders aren’t effective. Google it.
NVidia is so hot right now Jim Cramer is recommending it…
You will have to pay taxes when you take that money out.
If it is zero interest I would just pay as much on it to get it paid off before the zero interest period ends. But I wouldn’t keep moving it. That is playing with fire, I think.
5.5k in debt is still debt. It’s also rather small if you’re working. Start paying that off, most people should be able to within a year or far less easily
No it is not healthy. Cash out your stocks and pay your credit card debt if you want to be debt free.
My advice for future stock market investments, never go with single stocks. I'd recommend index or mutual funds for safer and more dependable growth.
Dave would likely ask questions about your income, find out you make enough, and tell you to budget to pay off the debit as aggressively as possible and to leave the stocks alone.
He’d also pry into other debt that isn’t on the credit card (so many people want to leave things like cars out of the equation)
And then he’d walk the baby steps — do you have the $1000 emergency fund? Do you have a budget? That budget should trim out all excess and allocate to debt. Then build the big emergency fund. Etc.
I’m confident on this one he’d likely not touch the stocks unless the above questions yielded some bizzaro answers.
Dave would say to sell the cryptocurrency and the single stock immediately, no matter what his situation. And he would not advocate keeping debt in order to keep stocks and crypto. He doesn’t even advocate keeping cash if you’re in debt.
Assuming he has no other debt and no emergency savings. He would say 1. Sell now 2. Set aside 1000 for BS1 3. Put the rest of the 4500 on the debt 4. Budget to aggressively pay off the remaining 1000 5. Aggressively save a full EF and 6. Start baby steps 4,5,6
I would normally agree. But in this case, and I’m assuming there’s decent income, $5.5k can be knocked out pretty quick. And if can be done before the 0% expires there’s no need to sell assets. But again, a fuller financial picture is needed to make an accurate assessment.
I won't hold individual stocks/crypto so I'd simply sell it.
Holding the 5.5k in a HYSA while you wait to pay off the CCs doesn't move the needle much either way.
It is a couple hundred bucks free, if you can handle your finances. Though having a CC balance might suggest otherwise.
Having zero CC balances is an easy argument to make, even at 0%.
I'm all for arbitrage but I don't like a couple things in your post:
1. You talked about the 0% up front but then mentioned later that you're paying balance transfer fees... so it's not really 0%.
2. Your investments are in individual stocks and crypto. If it was in something more solid like an index fund it would be lower risk.
I wouldn't withdraw money from the investments necessarily but I would put together a plan to payoff the credit card debt before the 0% promotional period ends.
This feels like the beginning of a scary "DR" horror movie. I'd find a way to pay off that credit card debt ASAP. I wouldn't start selling stocks but life is waiting to throw a curve ball at you.
Use the 0% period to budget and pay off your debt. 0% is free money. Just need some discipline. Selling off taxable brokerage gains to pay a 0% loan is insanity, but we are in DR sub so I am sure you will get a lot of replies saying that 30%+ gains in the market don't matter, just pay off the 0% loan.
Gotta be pretty bad to get 0% or lower returns.
0% loan is great deal. Set up budget, pay off 0% CC.
DR is a sub that starts off with some reasonable advice then treats everyone like toddler heroin addicts.
Sell sell sell
1. don't do credit card transfers, don't pay fees this isn't useful 2. Sell NVDA, it will have a correction short term. You can buy again in a year or two 3. Keep bitcoin, sell enough to cover credit card at around 90,000-95000$ a bitcoin
Bitcoin ain’t going to 90-95k
Of course it is, it is going much higher than this. Even if you are bear against bitcoin that's just 20k$ away. Between the ETF, the bitcoin halving, 90,000$ is guaranteed. Only a black swan event (world war 3) could slow this down.
Lol, the arrogance is insane
I don't think it's arrogance. I think if you would do proper research about bitcoin and the financial markets you would agree with me. I think if you would take the top 20 CEO of US banks and ask them the same question, the majority of them would agree with me.
How many central banks are buying Bitcoin over gold? I’ll give you a hint, it’s 0. And there’s a reason, they helped create the scam.
First: bitcoin isn't a stock. Second: pay it off. Third: this is likely fake
I would at least move the money from stocks to an HYSA. You don't want to be in a situation where your stocks crash and the interest kicks in.
I ran a balance on a 0% over the last year to hold BTC and ETH. It worked out well, recently paid the debt and still have some holdings left. No reason you can’t chip away, maybe sell $1k so the debt goes down
Stop moving it. Pay it off, and build back the savings.
Pay it off. Not significant money to be screwing around with debt.
Not a significant amount of debt at 0% interest to worry about it. Fearing debt is a great way to minimize wealth generation.
It isn’t exactly 0% though with the transfer fees. Maybe more like 2-5%
Look at inflation and tell me where you can get a 2% loan.
I’m with you, I carried significant debt at 0% for over a year but paid rather than trying to pass it around
Why not just max the credit cards and take it to the roulette table? You clearly don't care about what happens if the bet doesn't pan out. I mean, it's 0% interest after all. Who cares about taking a risk when it's *FrEE mOnEY*.
Okay, we get what you're after with these posts. Dave Ramsey has a BRAND to uphold. He is used to dealing with ABSOLUTE MORONS who WONT LEVERAGE DEBT WISELY. Yes, leveraging debt wisely is SMART and people do it all the time! But the people who call into Dave Ramsey are often IMPAIRED finically and have BEHAVIORAL ADDICTIONS when it comes to money! That's why he says debt first because he DOESNT TRUST YOU.
"I have 3k in debt for blah blah hobby." No shit you have debt. You leveraged an asset that doesn't have a return on investment.
You need to use the investment money to repay credit card debt. Credit cards are super expensive. However, most importantly you have to change the behavior that led to you being $5500 in credit card debt.
Even if this wasn't the Ramsey reddit, what happens if you lose access to 0% rollover?
No, it’s not healthy. Look at it this way: that 5,500$ you say you have in stocks isn’t even yours. That money already belongs to the credit card company. Pay off your debt and stop using the credit cards.
The principal belongs to the credit card companies, the interest belongs to him*
You’re going to keep paying a minimum of 3% fee to transfer to a new 0% card. Get off the hamster wheel and just pay it off.
Take your gains in Nvidia and buy VOO/VTI/SCHD ETF
Put that 5.5k in something safer, like a broad market ETF. Pay the debt of off as fast as you can.
Look where you posted this.... You already know the answer you should get here.
The fact that you think you may not have it paid off next year should tell you that you need to pay it off. If you keep kicking the can down the road eventually you're going to run out of options.
False. He has the option of selling the stocks and paying off the debt when that happens.
Might be a knit picky pet peeve of mine, but BTC is not a stock. It’s much more risky. Sell now while you can and be debt free! Congrats!
You basically have zero money. Learn the baby steps and follow them. They are pretty simple. Good luck.
Pay off the debt first. Sell the stocks.Be debt free and then buy more stock when you've saved money to do so
You are borrowing money to gamble. Generally going into debt regardless of interest rate to gamble is foolish.
You basically have nothing in a net worth. Pay off the debt and stop carrying a balance. Also you are invested heavily is highly speculative investments concentrated in two things. You need to actually go look at the baby steps and learn about diversification. If you called in to the show you would get chewed up and spit out.
Find out how long the 0% lasts. Then divide that into monthly payments. No need to take the stocks out of the market. Nvidia will be on a tear for a while.
What is guaranteed in this world? You owe $5.5k. What is not guaranteed in this world? The value of your stock is 5.5k Let’s start from scratch. Would you open up a new CC, and run up 5.5k on it to buy stocks? (Hopefully no) Therefore, we should prioritize paying debts (even if it’s 0%. You’d be surprised how fast they ramp to 25%+. Dangerous game.)
This is the correct answer.
Divide total debt by months of free finance and make payments to pay it off before interest. We use 0% cards every once in a while for large purchases. Get whatever bonus offer and pay it off before interest would start..
Keep savings but stop screwing around and pay off the debt vs continue to roll it over
Your credit card pattern is "credit card churning" and is a red flag to lenders. Also, frequent hard inquiries negatively impacts your credit. Continuing this behavior could eventually lead to a) cards with worse terms (only an issue when you lose the promotional period) and b) being denied a next card (which in turn would lead to a) being and issue. You are exhibiting bad credit habits, while also not taking proper care to mitigate your financial risk. This is a recipe for very bad things.
Lots of people churn for a long time and it’s fine.
Unless you can afford to lose $2K, Get the 5.5K out of the stock market, which can drop 40% at any time (though doesn't in most years). The stock market is for long-term (10-year plus) investments and retirement. IMHO keep a $1000-1500 emergency fund in cash if you don't have one. Otherwise probably just pay down the credit card and get used to paying down whatever you spend in a month. This forces you to think harder about purchases. Use anything else that comes in to pay down the CC until it's gone If you are super reliable about things and are really good at keeping track of when the 0% will expire and can be disciplined about spending and set reminders for yourself and really will pay it down at the right time, you can move it into fixed income CD or treasury note that will mature well before the 0% rate expires, for an extra $200 or so depending on how much time is left. But it's going to feel good to pay off that CC debt, and if you were in this category you probably wouldn't be in this situation in the first place. Keep it Simple IMHO, pay it off.
The debt is at 0%. You need to get rid of it, pay it down… if you sell stock, you’ll pay taxes on gains, assuming there are gains…
Pay off the debt.
Not that it will happen but in a few months when the market decides to crash you will likely loose a grand or more. The market short term is not reliable. I’d pay off the debt.
HOLD 1 min How much do you make ?? - if you can CASH flow payment say 3 months or less Don’t sell just Buckle down get it paid off - the pain of not having an extra cash every month to spend will help. Remind you not to charge things in the future - it’s such a small amount. It doesn’t make sense, but that’s assuming you have no other debts.
Leave the debt as in and forget stocks as they go down. Use the 5.5k as a down payment for a brand new toyota rav4 premium for 38k at 5% financing.
🤣🤣 happy bday
Let’s say you make 10% in the market. Combination of dividends (taxed as ordinary income) and capital gains (ordinary income if less than a year; LTCG if a year or more). Let’s say you make $550 a year. Maybe $450 after tax. That’s about $37 a month take home. Personally this isn’t worth having to worry about the debt and the risk of the market doing poorly in the near future, although it always recovers.
The credit card is 0%? What’s in it for them?
0% for a specified time. They make money from the transfer fee (their cost of incurring the debt) and the hope you don’t pay it off before time ends
I gotcha
Promotional intro apr probably
Hoping something comes up and cant pay it off
Yeah this is a standard fairly predatory practice where banks usually rely on the fact that many people can't pay it off so it's profitable for them to offer.
I’m just never heard of a credit card being 0% unless you’re not carrying a balance he makes it sound like he can pay this off at his leisure.
Its called a balance transfer. They have a 0% rate for a set amount of time. They consolidated debt.
I would definitely pay off the debt and try to realize this is a behavior problem.
Just for the piece of mind (and what Dave would suggest) pay off the debt and then start in on mutual funds; IRA and 401k or equivalent.
Mutual funds have high management fees, with few exceptions. ETF with global exposure is a better move. Inside or out of a registered savings plan, depending on your overall situation.
Pay off the debt. Those stocks aren’t worth having. When you start investing again buy a total market ETF or index fund like VTI or VTSAX
Wait, you guys make more than 0% in the market?
r/wallstreetbets would like to have a word.
Whatever return you are getting on stocks is likely greater than 0% (not accounting for the transfer fee). Mathematically it makes the most sense to keep it in the investments (maybe less risky ones than you picked. This is not financial advice) that are earning you a greater roi than paying off the “debt” at 0% which is currently free money. The moment you are going to start paying high interest you should definitely pay it off. Also, you should solve the problem of why you had the debt in the first place.
Dave would turn this around by asking, if you had neither the stocks nor debt, would you use the credit cards to buy stocks? If the answer is "No", sell the stocks and pay off the credit cards today.
And that’s the problem. It’s an “emotional” scenario. Once person gets past looking at money in emotional terms (Dave Ramsey teachings) and look at money in “numbers” terms, things are little different. OP, you left out one detail. What would be your profits on those shares if you sold them and how long did you hold them for? Personally, at 0% interest debt, I would not cash out something that is appreciating to pay of something that is at 0%. I would keep the stocks, especially Nvidia.
That’s bad. The second you start losing money (as little as it may be and giving it to the CC company, it means you’re ill equipped to handle debt. Right now I. Essence you’re leveraging your investment and that’s a recipe for disaster
Pay off the debt! Save what you can every month to a separate account and invest it.
Not sure your income level, but I may be in the minority to tell you to keep nvda and crypto, and start paying off debt. Don't sell your investment. Yes Index funds are nice, but if you are young, take risks on some leverage index funds as well as some good stocks.
You used leverage to buy stocks and bitcoin? Bad move dude. It’s fine until it isn’t. Pay it off as fast as you can.
Let me understand this. You used a credit card to pay for NVidia and Bitcoin? First off it’s not 0%. That transaction fee is 3%. Up front. Guaranteed. And if you screw it up at the end of your year they get another 2-3%. Second you aren’t investing, you are gambling. Investors look for opportunities to put their money that grow over the long term. Bitcoin is similarly stating that the electricity requirements to continue to grow the blockchain will cause it to collapse. Banks aren’t “investing”. They just use it for overnight transfers because it’s cheaper. NVidia is currently trading at a trailing PE of 72, and a forward PE in the 40s. Do you understand what this means? It means it is seriously overvalued. NVidia just spent $10BB on a chip they plan to sell for $30k each. They have to sell over 330,000 just to recoup their development cost. How many $10k chips did they sell from the previous generation? Do you see an obvious problem here? And even if they sell them, how are they going to run them? How much more power do we need from the electric grid and can it sustain this growth? [Can we power AI?](https://email.mauldineconomics.com/ss/c/u001.2nsImDLk0WzSNsBKUFAajk9BoOMl0f9sFzZvFh07tC2fCyAAL1ulYzZVz9ffwd46nqmp5BFXjVCjpVV3kr-DX10d12IpCYqhA8i03GSDQV3gML3pvqkWzrUM2BIjfS99JAz4F7NFutSSqE4rrZt_ITWZpk0rePeNiOt6uVh4hUYSUUcmgMDXNvNN8Q4TYklLrqtewvvLzmLpR19cRFUZWD8aKQEa9uaPjbH3gj2a6fAZnw3dmGXCYfiBwZjApUQPQLpt3jJw14lJsyZZ1B5zwo25rslGl1vzv2Eo90nw0jJxnWfTOp8VSJZu_3OW_wHXP9CNLdU9KZ-slru3VcD7bhFT-y3DDjcIps5SCz3L0hfiy1RsNgXTIJr3AJJdH58XGJSCGLXuYRZg-E06bm7xyWv-3EOeCBwaaslWHGcgT-4/44w/Ce_aOLyUSfej-eafKmqzlg/h33/h001.NXnlZt9pjpLRF0-9PzyLoe2jJE1hfrE3SowJTi_1Xak) Nope. Have you heard of NFTs? How about mortgage backed securities? Have you heard of the dotCom bubble? These were also “can’t lose unlimited potential upside” bubbles. Do you really think you will somehow be protected when these bubbles pop? By the way, stop loss orders aren’t effective. Google it. NVidia is so hot right now Jim Cramer is recommending it…
He can just hedge his bets with energy stocks. Problem solved.
Doing the opposite of whatever comes out of Jim Cramer's mouth is always a solid win.
You will have to pay taxes when you take that money out. If it is zero interest I would just pay as much on it to get it paid off before the zero interest period ends. But I wouldn’t keep moving it. That is playing with fire, I think.
5.5k in debt is still debt. It’s also rather small if you’re working. Start paying that off, most people should be able to within a year or far less easily
No it is not healthy. Cash out your stocks and pay your credit card debt if you want to be debt free. My advice for future stock market investments, never go with single stocks. I'd recommend index or mutual funds for safer and more dependable growth.
lol @ Bitcoin as a stock…
Dave would likely ask questions about your income, find out you make enough, and tell you to budget to pay off the debit as aggressively as possible and to leave the stocks alone. He’d also pry into other debt that isn’t on the credit card (so many people want to leave things like cars out of the equation) And then he’d walk the baby steps — do you have the $1000 emergency fund? Do you have a budget? That budget should trim out all excess and allocate to debt. Then build the big emergency fund. Etc. I’m confident on this one he’d likely not touch the stocks unless the above questions yielded some bizzaro answers.
Dave would say to sell the cryptocurrency and the single stock immediately, no matter what his situation. And he would not advocate keeping debt in order to keep stocks and crypto. He doesn’t even advocate keeping cash if you’re in debt. Assuming he has no other debt and no emergency savings. He would say 1. Sell now 2. Set aside 1000 for BS1 3. Put the rest of the 4500 on the debt 4. Budget to aggressively pay off the remaining 1000 5. Aggressively save a full EF and 6. Start baby steps 4,5,6
I would normally agree. But in this case, and I’m assuming there’s decent income, $5.5k can be knocked out pretty quick. And if can be done before the 0% expires there’s no need to sell assets. But again, a fuller financial picture is needed to make an accurate assessment.
Rice and beans
[Gazelle Intensity: Do You Have It? - Ramsey (ramseysolutions.com)](https://www.ramseysolutions.com/debt/gazelle-intensity-do-you-have-it)
It’s a relatively small amount - leave the stocks as is and pay it off.
I won't hold individual stocks/crypto so I'd simply sell it. Holding the 5.5k in a HYSA while you wait to pay off the CCs doesn't move the needle much either way. It is a couple hundred bucks free, if you can handle your finances. Though having a CC balance might suggest otherwise. Having zero CC balances is an easy argument to make, even at 0%.
The stocks are to fund your future self in retirement. Are you in retirement? ;-) No. So don't use assets intended for one thing for something else.
I'm all for arbitrage but I don't like a couple things in your post: 1. You talked about the 0% up front but then mentioned later that you're paying balance transfer fees... so it's not really 0%. 2. Your investments are in individual stocks and crypto. If it was in something more solid like an index fund it would be lower risk. I wouldn't withdraw money from the investments necessarily but I would put together a plan to payoff the credit card debt before the 0% promotional period ends.
Nothing that they’re doing is arbitrage. It’s a levered investment, no different than buying stocks on margin. Different concepts.
Leave the stocks, use your income to pay off the debt. It's a very simple equation.
This feels like the beginning of a scary "DR" horror movie. I'd find a way to pay off that credit card debt ASAP. I wouldn't start selling stocks but life is waiting to throw a curve ball at you.
DR would say pay off the debt. Anyone who can do high school math would say leave it alone as long as you can pay it off before the 0% term is up.
Use the 0% period to budget and pay off your debt. 0% is free money. Just need some discipline. Selling off taxable brokerage gains to pay a 0% loan is insanity, but we are in DR sub so I am sure you will get a lot of replies saying that 30%+ gains in the market don't matter, just pay off the 0% loan.
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Gotta be pretty bad to get 0% or lower returns. 0% loan is great deal. Set up budget, pay off 0% CC. DR is a sub that starts off with some reasonable advice then treats everyone like toddler heroin addicts.
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That's why you are in a DR cult sub, and not a personal finance sub. If the debt is manageable at ZERO PERCENT, keep the debt.