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Some GameStop investors got in with one goal — to pay off debt
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Some investors took a flier on GameStop Corp. stock in hopes they would make enough money to pay down debt. Now, after a wild January featuring a 1,625% rise, comes the hard part: deciding when to sell.
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With the hot stock dipping on Thursday, the question has become more urgent.
Den Kovacs, a 25-year-old IT professional living in Detroit, moved $1,000 from his emergency savings and $200 he'd set aside for his student loan payment into his Robinhood account — all with an eye to getting a slice of the GameStop mania. On Jan. 25, he sold his other stocks to buy four shares of GameStop at $80. After selling four shares for $212 on Jan. 26, he bought six more shares at $292, according to trade receipts provided.
His end goal: make enough money to pay down his $7,000 credit card debt.
PROVING GAMESTOP MANIPULATION WILL BE TOUGH FOR SEC, OTHERS
Mr. Kovacs and many other individual investors have been following the frenzy on Reddit, Discord and other platforms. On Friday, Mr. Kovacs sold his remaining seven shares at $352 and said he plans to use the gains — nearly $2,500, according to trade receipts provided — to pay down part of his credit card debt.
"I want to put myself in a position where I'm not sitting in debt like that," he said. "It's hurting my credit score, and I want to be able to move somewhere else. So I want to pay down debt with whatever I've gained from this."
As a forum, WallStreetBets typically derides those who sell because many want to leverage group power to continue the rally. But when it comes to paying down debt and reaching other savings goals, some users changed their tune.
One Redditor posted a screenshot from what he said was his final student loan payment: $23,504.45 made from GameStop trades.
"Never thought I would have paid this off so soon," the user posted.