N@N

I owe $11k on my car - should I dump some of my stocks and pay off my debt?

The article on MSN Money discusses a reader's dilemma about whether to sell stocks to pay off a $11,000 car loan. The reader has a significant amount invested in stocks, and the car loan carries an interest rate of 6.99%. Financial experts suggest that if the stock market's expected return is higher than the car loan's interest rate, it might be financially beneficial to keep the investments intact rather than selling them at a potentially inopportune time. However, they also highlight the psychological and financial benefits of being debt-free, suggesting that paying off the car could reduce stress and financial risk, especially if the stock market underperforms. The advice leans towards considering one's risk tolerance, the stability of their income, and the potential for stock market growth versus the guaranteed savings from paying off the loan. The article concludes by recommending a balanced approach, possibly paying off part of the loan while keeping some investments, or exploring other financial strategies like refinancing the car loan at a lower rate.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/other/i-owe-11k-on-my-car-should-i-dump-some-of-my-stocks-and-pay-off-my-debt/ar-AA1yBl01 ]