Cashing In to Pay off Debt

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I’ve had a series of revelations this week:

  • Our current income is not great enough to make any significant progress on our debt
    –Noma and I have been trying to cut back but when our income includes only one regular paycheck and our expenses include $1500 mortgage and $1600 in childcare it starts to feel like an exercise in trying to turn water into wine. Seeing others reveal their budgets was actually helpful in letting me see why we are having trouble staying on top of things.
  • We have three credit cards and we’re having a hard time staying on top of the bill pay. Our lives are hectic and our cashflow is tight…We know when the bills are due but when doing online pay we sometimes miss the cut off time.
  • We have paid our credit card late twice and had our APR rise as high as the moon.

All of this has made me realize that perhaps selling some stock would make the most sense. That stock is a nice asset but wouldn’t it be nicer to get rid of this debt and start working on positive financial goals such as sticking to a budget, building up our emergency fund and saving for some home repairs?

I wrote to Trent at Simple Dollar to ask his advice and he agreed it would probably make sense to sell the stock to pay off the debt.

Any other opinions? Keep in mind that I still have over 230K in 401K, IRA and other stocks…and a lot of equity in our house.

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One Response to “Cashing In to Pay off Debt”

  1. A Second Chance with Money « finance psychology Says:

    […] my series of revelations this week about our financial situation has spurred us on to […]

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