$73K in debt with $130K invested: should they liquidate before baby?
As seen on the 24/7 Wall St. homepage on November 7, 2026.
Wow. Unfortunately kids are extremely expensive. Get out of debt then have a kid. You will just drown yourself otherwise. People make the mistake all the time. Having kids they can’t afford and it ruins them.
A couple holding $40,000 in credit card debt is also sitting on $130,000 in investments, and the thread's sharpest replies say liquidating to kill 25% interest beats chasing market returns. The real debate is whether a one-year baby timeline survives contact with that math.
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A couple in their early 30s carrying $40,000 in credit card and personal loan debt plus $33k in student loans wants to start a family within a year. Monthly debt payments of $3,729 dominate their combined net income.
The thread's most upvoted practical comment, at 527 points from user MrRuck1, tells them to get out of debt first, because the financial strain of children will compound an already difficult situation. Other top replies pointed to daycare costs and newborn spending as reasons to delay.
The debate centers on $130,000 in investments sitting alongside credit card debt charging roughly 25% interest. One commenter argued that pulling from a taxable brokerage account to clear the balance cuts the loss even after the tax hit.
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They expect $2,200 per month for four semesters through the GI Bill once college starts in January, plus a lump sum in the spring. Commenters disagree on whether that cash flow and their avalanche paydown clear the high-interest debt within twelve months without touching investments.
The student loan question stays open because the original poster never disclosed the interest rate on the $33k balance, and commenters say the next move depends on it. Most top replies give the one-year baby timeline only if the credit card debt is gone well before next November.