should I cash my shares in?

bubbles567

Hi All

I'm having a dilemma if I should cash all my shares in to clear a little bit off my debt.

The shares are from a scheme at work and just get X amount from salary paid into them. If I cash them in it'll only give me approx £1k to pay off a c/card debt. I've not been in the scheme long enough for these to be tax free. That'll be in approx 2 years time. The net figure of £1k includes tax deducted.

Total unsecured debt is £15K. £1k off this is hardly a drop in the ocean really?

Whats best long term to keep all the shares until they become tax free and not loose a chunk to the tax man?

Can anyone help solve my dilemma? thanks all

gadgetmind

My view would be to keep the shares, and keep buying into them for another couple of years. In the mean time, get that debt down as low as you can, and maybe your shares will take an even bigger bite out of it.

srcandas

bubbles567 wrote: »

Hi All

I'm having a dilemma

Yup you do. Presumably the credit card debt is at a fair wack of interest? Can it be moved with a transfer to 0% for a while?

But regardless shares are to some degree a gamble. Yes over the long term a good balanced portfolio will most likely pay above inflation but you are talking about one share.

I'm assuming that you do not have other savings?

And I assume you have no good reason to believe the value of your shares will shoot up in the near future?

One optuon would be to sell the shares and put the money in an instant access interest paying account.

If you found your source of income suddenly disappeared you could use the savings account as a reserve to ensure that you could pay at least the minimum each month.

Of course that assumes you wouldn't be tempted to spend it

If you would then use it to reduce the card.

For sure £1000 at credit card rates, if you are paying the full rate, is not worth waiting 2 years for (I assume you pay base rate tax).

Sorry waffling - focus on killing that debt :beer:

bubbles567

Hi and thanks for the posted it appreciated. £8.5K is a car loan 3 years left, £4.9K is on 0% for two years, paying min each month until I get £1.k off the c/card with 9.9% interest.

There's no way I can 'keep' to money in a savings account. I WILL spend it.

So given the fact the I have some thing to show for a loan ie the car, and a good chunk is on 0% really it's only 1.6k.

Nope have no other savings :-( I know shoot me now or after you stop laughing at me.

hummm.... :-/

grey_gym_sock

at the current rate of progress, how long will it take you to pay off the 9.9% card?

if you wait until the shares are tax free, how much more will they be worth then (assuming the share price doesn't move)?

do you have any strong opinion about whether the share price will do well or badly? of course one can never tell, but is business very obviously either booming or going to hell in a handbasket?

missile

paying min each month until I get £1.k off the c/card with 9.9% interest

I do not understand, is this a second card? If you are paying the minimum, do you know how long it will take to clear 1K off the balance?

Those shares may rise in value by more than the interest you will be paying on the credit card, but ...... it is a risk. I would cash them in to clear some of the balance.

atush

Sounds to me that you need the debt free board, not this one?

kidmugsy

I've always been unhappy with the idea of investing your savings and your career in the same company.

markwilkinson

What's the scheme? If its a share save scheme like mine, you save the money over a period time time then have the option to buy shares, at a discounted rate, then sell at market value, or just get your money back? Or are you just buying our company's shares at market rate each month?

If its the former I'd suggest you stick with it. If the latter, I'd be tempted to stop, get the money out and reduce our debts.

bubbles567

thanks folks its buy at market rate each month for which the company contribute half of the amount that I put in.

It's a second card with the small balance of £1.6 k at 9.9% I reckon I could clear that in 6-8 months.

It just seems like a bit of a waste to loose money to the tax man when I could just ride it out a bit longer to clear the small debt that's bearing interest... bide my time until the shares become tax free then pay a bigger chunk (if not all of the remaining debt at that time. Assuming that the share price has risen and they are worth more. Company is doing well (a wonder in current climates!)

missile

Now you have explained company contribution, that share deal seems a lot more attractive.