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.
