Advice on paying off debt

Selling your BTC to pay off high-interest debt can be a smart move, especially since you have an immediate opportunity to wipe out the credit card balance and reduce financial stress. Here’s a breakdown:

  1. Immediate Savings: Given credit card interest rates (often 15-25%), paying off this debt now could save you hundreds in interest payments. This also frees up cash flow for other priorities and reduces the risk of the debt snowballing if anything unexpected comes up.

  2. Future Investment Potential: While it can feel like giving up an investment, there’s value in a debt-free start, especially with a mortgage at a low 2.9% rate and solid home equity. Your current financial situation limits your ability to buy more BTC, and it may take some time to rebuild this investment. Meanwhile, you’re improving your net worth by eliminating high-cost debt.

  3. BTC Growth vs. Debt Costs: Bitcoin’s potential growth is uncertain, while your debt costs are immediate and guaranteed. By paying off debt now, you’re getting a known “return” equal to the interest you would have paid—likely a better bet than holding onto BTC, especially if debt costs are limiting your financial freedom.

  4. Long-Term Stability: Wiping out the credit card debt and focusing on saving and rebuilding may offer peace of mind. You’re in a strong position to recover by rebuilding your savings and investment contributions once this debt is behind you.