Should I liquidate assets to pay off my Credit Card debt.
Here is the situationÂ I own my own home valued at $800,000. I owe $515,000 on the 1st mortgage with a variable interest rate and $65,000 on a HELOC (the HELOC is also on an APR and currently its at 9% and rising).
I own another piece of property which I am renting. ItÂs valued at $500,000 and I owe $285,000 on the 1st mortgage with a fixed interest rate and $30,000 on the HELOC (the HELOC is also on an APR at 9% and rising).
I have $25,000 in Credit Card debt. The rate at which itÂs being charged is 8.9%
I have $100,000 in liquid assets (i.e., stocks and mutual funds), and $15,000 in cash.
My main goal is to trim the credit card debt. The credit card debt is at a fixed rate of 8.9%, but is the interest is not deductible. The HELOC is adjustable and probably going to go up before it goes down. What should I do? Besides borrowing more, should I sell stocks or use cash to pay off the credit card debt and both HELOCÂs, or just pay off the credit cards and keep writing off the interest each year.