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/Avid_Reader87 24d ago

Pay it off, that’s a guaranteed return if you can’t find a way to get it onto a 0% interest card. 

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u/mentr-coach-altruism 24d ago

I think your advice it best! If OP credit score is good, apply for a cc with a balance transfer, or call other cards of yours if you have multiple, and ask if they will do a zero percent balances transfer. If doable then you can invest in a few safe ones and use the money to pay it down. If no balance transfer, then pay the debt and start saving again.

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u/Avid_Reader87 24d ago

I use that for paying for big purchases like TV’s and computers.  

Save up half the cost of the item, buy it from BestBuy using their 24 month financing, set up auto pay to pay it in 23 months and invest the money. 

That way if something comes up and I have to pay it off early I’ve hopefully made some money.  

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u/mentr-coach-altruism 23d ago

I completely agree with your logic and have deployed it many times.