I'll try to keep it short:
My wife and I's income from last year was about $120k. I make around $40k/year, she makes around $80k.
I am debt free, but my wife has about $51k in student loan debt.
$30k are federal loans at 6.1%. We are crossing our fingers that the current administration will do some form of student loan debt erasure, but not banking on it. She is not currently paying these because of the federal halt on student loan payments.
$21k are private loans at 11.25%. At the current rate she's paying this off, she will have paid double the $21k when the loan is paid off.
I have been holding some cryptocurrency for a long time and am now in a position where I could sell enough to pay off the private loans in full. The crypto I would be pulling out would be taxed as a long term capital gain because I've held it for over a year. But it would bump up my taxable income by that $21k too.
To me, this still seems like a good idea that will save us a lot of money in the long run.
Am I missing anything? Is there anything else I need to consider before doing this?
Thanks!
Submitted February 18, 2021 at 05:04PM by therxbandit https://ift.tt/3ayYRei
