Some GameStop investors achieved one goal: to repay the debt

Den Kovacs, a 25-year-old IT professional living in Detroit, transferred $ 1,000 from his emergency savings and $ 200 he had set aside to pay off his student loan to his Robinhood account, all with the goal of to Get a Slice of GameStop Mania | . On Jan. 25, it sold its other shares to buy four GameStop shares for $ 80. After selling four shares for $ 212 on Jan. 26, it bought six more shares for $ 292, according to business receipts provided.

Your ultimate goal is to earn enough money to pay off your $ 7,000 credit card debt.

Kovacs and many other individual investors have been following the frenzy of Reddit, Discord and other platforms. On Friday, Mr. Kovacs sold his remaining seven shares at $ 352 and said he plans to use the profits (about $ 2,500, according to business receipts provided), to pay off part of his credit card debt.

“I want to put myself in a position where I’m not 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 off the debt with everything I’ve earned with it.”

As a forum, WallStreetBets often mocks those who sell because many want to harness the power of the group to continue the rally. But when it came to paying off debt and achieving other savings goals, some users changed their tune.

One of Redditor posted a screenshot of what he said was his final student loan payment: $ 23,504.45 made with GameStop transactions.

“I never thought I would have paid for this so soon,” the user posted.

It seems worth betting on some traders who plan to use their fortunes to eliminate student debt and pay off other obligations.

Amina Spahic, a 28-year-old communications specialist in Florida, originally bought two weeks ago for $ 38 per share. She has already used some of her GameStop earnings to pay off the debt and put the rest back into GameStop. Having made his moves earlier this week, he said he now has no plans to sell.

“I knew there was growth and potential,” he said. “I told everyone I knew,‘ I’m watching this on Reddit. Do this.'”

Millennials ’average credit card debt rose to $ 4,322 in the third quarter of 2020, according to Experian analysis.

More than 22 million borrowers with direct federal student loans stopped payments during the pandemic, according to data analyzed by Mark Kantrowitz, author of “How to Appeal for More College Financial Aid.”

Some traders have begun to imagine money-earning milestones remaining out of reach.

Anthony Eleftheriou, an 18-year-old college student living with his parents in London, only started investing a month ago. On Jan. 22, he bought 25 GameStop shares for $ 50 and said he plans to stay for now, even using his earnings to pay tuition fees.

“I wanted something a little rich and fast, but now it’s become something more long-term,” he said.

Joe Ballent, a 32-year-old medical assistant working in Cheyenne, Wyo, said he prioritized some other goals before his student loan debt with his GameStop income: first, pay for his next wedding, and then , save up to buy a house. Both seemed out of reach before the GameStop rally, he said.

“I feel like there are a lot of people who have never been able to move forward. I assumed six figures of debt [for graduate school] and I worked two jobs before school, but now I can’t afford the house? “

Ballent started putting more money on the market last year, first with RobinHood and then with accounts at Vanguard and Schwab. Now, he has invested more than $ 10,000 in GameStop, according to business receipts provided. Gradually, he sells shares, uses some of his earnings to pay for the wedding and helps with the medical expenses of a loved one. Once completely sold out, he wants to start his housing hunt.

“I’m sure I’m a small fish compared to some of these people,” he said. “But it’s significant to me and I still want to see where it’s going.”

Following RobinHood’s decision to join other brokers to restrict operations in rapidly rising stocks, Miss Spahic said she plans to close her positions and delete the app. He still follows the conversation on Reddit to determine which broker he will choose as a replacement.

“I’m closely following what each of them is saying,” he said. “I’m waiting to see who comes out on top and says they’re for people.”

Meanwhile, Mr. Kovacs and others keep their eyes glued to WallStreetBets.

“I think people recognize that there’s an opportunity here,” he said. “You look at those gains and look at what happened earlier this week and you’re wondering,‘ Is everyone right collectively or is everyone wrong? ” Like me.”

—Marc Quiroz-Gutiérrez contributed to this article.

Write to Julia Carpenter to [email protected]