Wise to Cash Out 3.5 ETH For Debt Payments

[worldtraveller321]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

[1715093627]

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[Huppercase]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

If your debt isn't due, then I will advice you to hold but just know that this is risk. It's a two way side thing but the upper is more likely to happen than the down side because Bull run hasn't happen yet, we are still in the phase of last run recovery. But if your debt is due and you feel disturb, kindly find a way and pay that loan and have peace of mind especially if there is interest rate that will come with it if you default your payment.

Capital gains are between +-30% at most of anything gain from the market. For every $100 you invested, you are likely to pay +-$30 to your government depending on where you from, so do you calculation if its going to favour you and the debt you have to pay.

A little suggestion, why not find an alternative to pay up the debt and free the 3.5 ETH, you should be financially capable to do that if you could raised this amount by yourself. This should be an investment.

[GxSTxV]

True that most of the world now or let’s say 99% of the world still on FIAT, even when you have all your savings on crypto you would have to sell and exchange some of that to fiat money. Well, I don’t count that as a bad thing still, however you will lose the crypto and asset value once you exchange it to fiat.
In your case, you will have only one choice since you don’t have any other source to pay your debts, and if it’s urgent then don’t feel bad exchanging your savings or investing as something urgent and not in your hand, but if you have another choice I advise you to take it since the market now is going bullish and you may lose some value of your ETH you sold.

I don’t have many knowledge in taking loans using ETH and getting fiat instead until paying back that loan, the issue here in this market situation is finding something who would accept your loan request.

[FatFork]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

I'm sure you've heard the old saying "Never invest money you borrowed".  I think there's some real wisdom in that - it just seems smarter not to risk money that isnt actually yours.  So if you've invested in crypto but also have debts you could pay off with some of those earnings, that might not be a bad idea.  Get yourself out of debt first, so you've got a clean slate.  Then you can decide how much extra to put into investments, without owing anything to anyone.

But I don't understand the part about taxes... How can you pay more in taxes than the credit card debt you're going to write off? That doesn't add up.

[wheelz1200]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

Although I think crypto gains will outweigh the possible % you are paying on that debt it's never a bad idea to pay off debt when you can.  Paying off debt has mental health benefits that can far outweigh any possible crypto gains you might achieve.  There's a chance crypto goes down so it's your decision but good luck either way.

[batang_bitcoin]

You'll never move on if there's a debt that keeps on pulling you back. It's a huge relief whenever you're able to pay your debt in full and that's why if you're able to pay it with your investments, then do it. Of course, taxes are obligations and you have also to deal with it.
But upon paying that in full, I am sure that you'll be able to breathe fresh air with that. I've been there and done that, it's always recommended to pay your debt so you have no chains to stop you in moving on with your assets and investments. If it is going to take your ETH for doing that, how much are you in profit with that? Because for me, I'll weigh things on what is not heavy for me until I'll be able to pay my debts.

[nelson4lov]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

It depends — if the debt does not need to be paid immediately or anytime soon, you might want to hold off a bit because right now, ETH prices are going off because of a potential ETH ETF approval. So if you sell now, you might end up losing out on some potential gains. On the other hand, if you need to pay off the debt as soon as possible, then by all means, you should do so.

If you're familiar with defi, I think there are some markets that you can provide ETH collateral and take out stables to pay off your debt. This way, you still have your ETH but have to deal with the borrow interest enforced by money markets like aave, etc.

[Marvelman]

Using crypto profits to pay off credit cards makes sense - though you gotta deal with some taxes, it's likely way less than that credit card interest rates you're drowning in. Hopefully selling some ETH lets you get your head above water.   Best of luck getting free!

[o48o]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

Only resposible answer anyone could give you is, yes, if you have money to pay your debt, maybe you should do that.
I might not do that though, but i am someone who is risking a lot by not doing that. Also it depends if i had still some in crypto or if i had to cash out everything to pay that debt.
Because if that's just part of your investments, it's a no brainer that you should pay it, i would too.

Also you don't mention if that's only way you can pay your credit card debts, can you sell something else to pay it, or can you save money to pay it? Because i have a feeling that ETH is going way higher later on, so i might leave some eth for that. So ask yourself would it be horrible, if it did go $20k and you didn't hold any eth at the moment? Some of us can watch from sidelines easily without holding crypto and watch it moon. But it can be devastating for some people, so i can't ever recommend selling everything. Always leave at least a small moonbag

[wxa7115]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

Those kind of questions are too specific and you are better off asking them to a lawyer or an accountant that lives on your country.

This is because the legislation on each country is different, as in some countries if you have held your assets for a period longer than a year then you can sell them without paying any tax, now unless the credit card debt you are carrying was very high, it could be a better move to just wait until ETH became even more valuable, this way you could pay your debts and still have some money left once you sold it.

[Dailyscript]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

Indirectly you are saying you want to completely sell off your investment in ETH in other to pay your debt. To be honest if there were a better way to pay off this debt like kicking your ass an multiple jobs or selling something else and not your investment i will be glad. At this stage it is dangerous for an investor to start selling off your investment whe he has not reach his target. Cause am sure you are yet to reach your target. However, if paying off debt would relieve some financial burden and give you balance in life then do it. But dont hesitate to start investing again after you have fully recovered.

[husencoe]

I think paying debts is an obligation.  Putting it off will only make you sink deeper into many problems and make your life miserable.  Investment is a good thing, but there are no guarantees there.  Invest only with the money you have and free yourself from major debt.  The interest on your debt will continue to increase and it will make your life more narrow.  Maybe you have to pay a few percent in taxes, but that's better than paying loan interest later.  Settle your debts first, even if you have to sell your assets, there will be another time to resume your investment.

[Kelward]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

It depends — if the debt does not need to be paid immediately or anytime soon, you might want to hold off a bit because right now, ETH prices are going off because of a potential ETH ETF approval. So if you sell now, you might end up losing out on some potential gains. On the other hand, if you need to pay off the debt as soon as possible, then by all means, you should do so.

If you're familiar with defi, I think there are some markets that you can provide ETH collateral and take out stables to pay off your debt. This way, you still have your ETH but have to deal with the borrow interest enforced by money markets like aave, etc.

Entering bull run is not a good time to sale a top altcoin that is sure to bull in this season, Ethereum, price has been quite dormant before now, but it has started appreciating and has the potential to double it's present price if it's ETF is approved. However peace of mind is very important, having a dept that is mounting pressure on you and you have a means to settle it, then let the person do it, but he should consider if it's possible to postpone the repayment a little while longer, or take another loan with a lesser interest rate to settle the dept. The aim of this is that the longer the Ethereum, remains with him, the better, because it'll keep pumping in the bull run, but if there's no other choice for him, then let him sale and gradually start to accumulate again.

[jrrsparkles]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

You are talking about credit card debts which has to be cleared of on time no matter what, so just sell if ETH is the only possible way to generate money at the moment. Credit cards should be used wisely cause it can make a dent in our credit score and they will last for decades and in every future loan application so try to avoid using credit cards if you don't have a stable source of income.

[bitterguy28]

you’re playing a really risky game here, mate you are not only facing the risks of crypto but you are also facing the risks of not being able to pay your debt off

if you wait for the price to go up and it suddenly drops, you might not be able to pay off your debts

if you take it out now and it suddenly rises, you might feel FOMO and think about the money you could have gained more if you had just wait

overall this is not really the ideal situation don’t you have any other source of money that you can use to pay your debts off?

[AakZaki]

Just look at the benchmark now, the price of ETH has now reached $4k and you have 3.5 ETH, that's $14k. You haven't mentioned how much debt you have to pay, if it is still below the amount of ETH assets you can sell it for half. It is very wise when you pay off a debt that you need to pay because it is due and if it is late then the fine will be greater. There is nothing more important than paying off debts immediately and that is a wise choice.

[Wexnident]

Right now the markets are rising in our favours. Too bad the worlds markets are in FIAT.
Right now i wish to pay off some credit card debts i have. All in FIAT of course and yes i know i will have to pay tax on the capital gains.
Would i be making an ok choice to sell off some ETH right now to CAD to pay some debt off. as where markets are im in the position.
just wondering on the tax i have to pay, would i be paying more tax then what i will be writing off in credit card debt? thanks

Yep. I don't really like having any sort of debt under my name so before I do any DCA'ing, I try to pay off whatever the hell it is that needs to be paid off. Losing a month or two of DCA cycling is I'd say worth it if I can have no debts under my name. In the first place most people would reconsider investing if they have debts so maybe plan that out after this cycle of payments so that you can avoid being in debt?

As for the taxes part, better to ask a lawyer in your area or someone similar. They'd probably know more than some random internet stranger

[Mate2237]

Op you don't have to ask people to sell your coins, it your choose to sell or not. And because of this fiat issue Satoshi created Bitcoin to bypass this process but the buying and selling of goods and services of Bitcoin is not yet realized and we are still waiting for that to come because at stage of the cryptocurrency market everything in the world will change automatic.

And as I said it is your choice because it is only you know when you start the investment so if you have enough now then it is your luck and if I not enough but you want to sell and settled the debt is is all your choice.

[poodle63]

honestly if it could lift the burden off your minds its always worth it i mean if you are cornered and need to pay the debt off your credit card to keep that credit score from tainted then i guess go ahead.
in making decision like this honestly as many have probably stated repeatedly that you shouldn't ask some random people.
you just try to weight the advantage and disadvantage and I think thats the way.
with selling off your ETH I guess there's nothing wrong with it, ethereum already high enough anyway if you find a way of utilizing your hard earned money for betterment of your life I think that make sense.
but just don't regret if turns out ETH is the same as bitcoin surpassing its all time high faster than what many people has projected.