75 shares of MS
Question: I have 75 shares of Micro Soft and don’t know if I should sell or not. I don’t own any other shares and I am 25 years old. I am about $10K in debt at the moment and am thinking about cashing this in to pay off student loans. What should I do? 75 shares is not that much!!!
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Answer: Debt seems to increase at a much faster rate than almost any stock appreciates. The ONLY way to be rich is to owe no one anything. Always pay off debts first. Even if you can only make a dent in a debt, it is worth beginning. I my opinion, the only debt worth having is a mortgage on a house that is appreciating in value. Sell the stock on a good day when it is up. Or put a good till cancel order at $96. Hope u have a discount broker. Hopping credit cards may save you money on interest in the short term, but keep in mind that each account you open stays on your credit report for seven years. If you hop too many times, you will start being turned down for credit because of “too much revolving credit” even if most the accounts on the report are closed.
$10,000 is a lot of debt, and you will be paying a lot of interest even if the rates are low. Even if you think MSFT is going to do well, I wouldn’t be holding so much debt. If you sold half your shares, you would reduce your debt by about 3500 and still have a substantial holding in MSFT.
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