I need some personal financial advice.?

I have about about $10000 in credit card bills at 7% to 9% and owe $14000 on a 06 Charger at 5%. I have the money to pay these off completely but most money is invested in the stock market and has been doing pretty good lately. I've been paying about $1000 a month on the credit cards. My monthly income just covers my expenses leaving none for savings. Should I bite the bullet and pay it all off or is there a better plan?I need some personal financial advice.?
Definitely pay off your CC debt!





Here is why: in the long term, you aren't going to make 7-9% in the stock market. Maybe in the short term, which sounds like it's been good for you.





So, the ';opportunity cost'; of not paying off your credit cards is the same thing as your stock market investments making 7-9% LESS than they have been in the short and long term (for however long it takes to payoff the CCs). It's a risk not worth taking.





Very glad to see you asked this question and hope that others can learn from it. Many people wouldn't even consider asking this question.I need some personal financial advice.?
It doesn't have to be an all or nothing situation. I would pay off the 9% credit card, as you are not likely to make that much in the stock market without taking any risk. You also can look for a lower interest rate credit card and balance transfer this to it. For example, the pentagon federal credit union offers a visa with a 2.99% balance transfer offer.





The next thing to look at is your retirement savings. If you have a 401k plan, you should maximize that before paying off the 5% charger, because the IRS will pay for some of your savings through lower taxes. At a minimum, at least contribute enough to get the biggest employer match. If you don't have enough cash to do that right now, change your withholding with your payroll department to get a little more take home pay and use that to either pay off debt or bump up your retirement savings.





If you still have money left over, then yes, I would pay down the 7% card, then the car, and slowly re-enter the stock market especially through tax-advantaged accounts like 401ks and Roth IRAs. Also, set aside at least two months' living expenses in a savings account. The reason is if you lose your job or can't work, having little to no payments is a great thing. It will save you from selling stocks in a down market in order to meet your bills..














Then, use the money you were paying on the 9% car
Pay off your credit card debt. You'll feel a whole lot better not being in debt. Once you can breath again, you can start saving. Best of luck to you.
For most people in your situation I would recommend paying off the credit cards - credit card interest rates are usually so high that it's hard to find any better use for your money.





But your situation isn't so clear cut. Your interest rates are moderately high, but certainly not astronomical. Whatever you decide may easily backfire - selling stocks to pay off debt and watching the stocks zoom to new highs is just as painful as keeping the stocks only to see them retreat.





My sense is that you should pursue some middle ground that gets you out of debt without doing too much damage to your investments. If your investments are in mutual funds that you can redeem without incurring high transaction costs, I suggest that you set some specific debt reduction goals. For example, a good goal would be to decrease your credit card debt by at least $100 per month (or some other target amount). Every month you pay as much on your credit cards as you can afford from your current income. Hopefully that will be enough to reduce your debt by the target amount. If not, redeem enough of your mutual funds to make up the difference.





This strategy ensures that you are gradually paying off your debt while still giving you a chance to profit from your investments. It also avoids that kind of all-or-nothing decision that you would otherwise be forced to make. I also like the incentive that it gives you to pay just a little extra each month so you don't have to sell any assets.