Resisting Divesting?

Did you know that when you borrow money to invest, the interest on that money is tax deductible? So, if you sold some stock to pay off a $2,500 debt on which you were paying 17 percent, you'd be saving $450 a year in interest costs. If you borrowed $2,500 to buy back that stock and paid 10 percent interest on the loan, that loan would cost you about $150 a year after taxes. So, you could pay off your high-cost debt, have your stock and still save $300 a year in interest costs.




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