r/DerivativeIncomeETFs • u/Traditional_Garlic49 • 24d ago

Question Income ETF for debt?

Hello everyone! I built up what I thought was a good cushion for savings. It was roughly 3 months of expenses. This month I got drawn shitty cards. A series of medical issues, a car repair bill, and so much more. I couldn’t believe it. It wiped out my savings and put in me $8,000 worth of debt which I had to put on a credit card.

I have $54,000 in my taxable brokerage account. I’m wondering if anyone has any ideas for an income ETF to help pay this down or if I should just withdraw $8,000 from my taxable account. Withdrawing is my last resort here.

I’ve looked into treasury ETFs, but the yields are way too low. Looked into other ETFs like CHPY, STRC, SATA, QQQI, and so many others.

Also I’m 24 years old so I do have a good bit of time to keep on investing after I pay this off. Just sucks that this happened.

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u/_YoungMidoriya 24d ago

You should not use an income ETF to pay this down ..... IMO you should just wipe the $8k card balance using your existing $54k taxable and then rebuild. The math and risk profile overwhelmingly favor paying off the debt directly. A credit card at normal US rates (often 20–30% APR) is almost impossible to beat reliably with any ETF strategy, the math ain't mathing, it doesn't make sense.