Is it a good idea to pay off low interest debt with stock?

Is it a good idea to pay off low interest debt with stock?
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#1

I’m 48 year old man making $110K in IT industry. I’m paying 22% to alimony and child support. I have about $10,000 in debt that is currently in an 18 month 0% program which I plan on transferring to another 0% program once it expires. I am making block payments each month for as much as I can afford. I also have about $15,000 in company stock in a program where I contribute each month. However the stock is purchased only every 6 months at a discounted 15% below the lower purchase price of either the 1st day of the 6 month period or the last day.


#2

You actually need to speak with your tax consultant to determine the consequences of selling the stock.
My concern, however, is that you will be giving up a 15% discount (which in essence is a profit) to pay off debt which is at a lower rate. Based on that fact alone, I wouldn’t suggest it.


#3

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