Better to pay down the cc dept or payoff via silver sale?

tneig

Better to continue to pay the cc dept or payoff via silver sale?

Knowing that the silver was purchased at a higher cost than today..

derryb

only you can determine that because only you know your complete financial picture.

I would advise anyone not to be buying PMs when they have credit card debt. While it can work when PM's are appreciating, it never works while they are depreciating.

JohnnyCache

As much as it might suck, I'd get myself free of debt.

The silver, if you really desire it, can always be repurchased at a later time.

Though bought at a higher price, you take the hit once, quickly, like tearing off a band-aid, as opposed to the continued beating of the credit debt.

Additionally, at any time, given CC's are variable rate, the amount of interest charged can jump up.

The release of debt from around ones neck is a better reward than any glittering bar could ever be.

This is jmho

jmski52

If you have some other bullion or coins that you want to sell at a profit, sell enough of each to extinguish the debt and come out tax-neutral. If you don't have anything you want to sell at a profit, you would still qualify for a tax-loss carryover in subsequent tax years (if you sold the silver at a loss).

Either way, getting rid of the debt is a good idea, imo.

PerryHall

<< <i>Better to continue to pay the cc dept or payoff via silver sale?

Knowing that the silver was purchased at a higher cost than today.. >>



Sell the silver and pay off your CC's. The CC interest rates are draining you and you'll sleep better getting out of debt. Once you are out of debt then you can always buy more silver. There's plenty of silver out there and it will always be available.

piecesofme

Pay down the debt with the lesser quality pieces of shiny, keep the better stuff.

I recently did a $17k home improvement and dumped about $11k of "stuff" locally to help manage the loan. I still have $6k in debt on the loan but it will be gone in about 4 years at the payback rate, maybe sooner if I make larger payments. This wasn't CC debt, but more less the same thing.

Learned long ago how carrying the weight of debt is so burdensome and holds you back. Do all you can to minimize your debt even if it means parting with some of the shiny. It's all only temporary yours anyway in the bigger scheme of things.

gsa1fan

Never had a credit card, seen them ruin to many folks. You own nothing while in debt, save up, pay cash, or pass.

PerryHall

<< <i>Never had a credit card, seen them ruin to many folks. You own nothing while in debt, save up, pay cash, or pass. >>



Credit cards have many advantages. Most will give you a cash rebate and they provide protection when you make a purchase that turns out to be fraudulent. Of course you need to have the discipline to pay your bill in full each month or you'll run up interest fees.

BAJJERFAN

<< <i>

<< <i>Better to continue to pay the cc dept or payoff via silver sale?

Knowing that the silver was purchased at a higher cost than today.. >>



Sell the silver and pay off your CC's. The CC interest rates are draining you and you'll sleep better getting out of debt. Once you are out of debt then you can always buy more silver. There's plenty of silver out there and it will always be available. >>



And you'll likely be able to buy it back cheaper. If it costs you say $500 in interest to wait for $400 in gains in silver, tis better to take your lumps now.

Baley

I usually split the difference rather than do something all or nothing. So, I'd say sell some of the silver and pay down some of the debt. See how that feels, then re-evaluate.

Sell the silver you're least fond of looking at and emotionally attached to, that will make it easier

TwoSides2aCoin

I once had a friend who needed money. They said they had good credit. I asked if they wanted to "flip a buck" using their credit card. THey bought some gold from the mint for me when there was a "limit". I paid them a profit on the coins. The next offering I asked this friend again if they wanted to "do it again". They said "NEVER". I asked why and heard an answer I wasn't prepared for. "Well the last time you gave me that money I didn't pay off the credit card in 30 days , I used the cash".

Now if that person were to have paid off the card , there would not have been any finance charge in the first 25 days (usually the grace period). They could have still paid off the card and pocketed a couple hundred. Instead… Well, never mind. My stories suck. Few people understand my point.

BAJJERFAN

<< <i>I once had a friend who needed money. They said they had good credit. I asked if they wanted to "flip a buck" using their credit card. THey bought some gold from the mint for me when there was a "limit". I paid them a profit on the coins. The next offering I asked this friend again if they wanted to "do it again". They said "NEVER". I asked why and heard an answer I wasn't prepared for. "Well the last time you gave me that money I didn't pay off the credit card in 30 days , I used the cash".

Now if that person were to have paid off the card , there would not have been any finance charge in the first 25 days (usually the grace period). They could have still paid off the card and pocketed a couple hundred. Instead… Well, never mind. My stories suck. Few people understand my point. >>



UH HUH! And those kinds of folk wonder why they are always in the financial gutter.

LindeDad

<< <i>to pay your bill in full each month >>



Hard lesson to learn by most and what the Credit Card Companies know and rely on to stay in business.

mariner67

sell your silver, payoff your CC and start to save before you buy, if you can afford it.

derryb

<< <i>

<< <i>to pay your bill in full each month >>



Hard lesson to learn by most and what the Credit Card Companies know and rely on to stay in business.

>>


I'm making money off of them.

Bochiman

Unless you are lucky/skilled enough to catch a big upswing in silver, from when you purchase it, get rid of the CC debt.
Yes, you bought it at a higher cost than you can sell it for today, but that is largely irrelevant. If you wait to try to get more from it, and "make a profit" or breakeven, you will continue to pay CC interest and still NOT get anything from the silver.

Pay the CCs off, save up a bit, and then buy back into silver if you want.


Just some numbers, for example, pulled out of my butt for illustration purposes....

100 ounces of silver purchased at $40/oz ($4000 sunk cost....no ROI until sold, if any).
$2000 of CC debt @ 10% (so, let's say you are paying $200/yr in interest).
Silver @$20/oz (yes, I know it is less, just using imaginary numbers in the most rounded of sense right now). So, your hoard is valued at $2000 (assuming full melt, nothing more, nothing less).
Now, you don't know how long until silver goes up (or down more), or what your magic number is, but each year that you keep your hoard, and don't pay off your debt, you are paying someone else (CC company), basically, for the privilege of keeping your hoard.

See which way you prefer to go.....I, personally, had a similar decision years ago. College loan debt or stocks I had. I sold the stocks at a slight loss, but paid off my loans completely. I was able to save up from that and pay myself with the interest I was paying others, and buy other stocks later....and have remained (aside from the house...and an auto that I could pay off any time, but the rate is too good to want to do that right now) totally, 100%, debt free. Great feeling!

I, also, never want to sell at a loss, but when you can see the benefit to doing so, it helps.