Some GameStop investors have been involved in one purpose – to pay off debts

Den Kovacs, a 25-year-old IT professional living in Detroit, moved $ 1,000 from his emergency savings and $ 200 he set aside to pay off the student loan to his Robinhood account – all with the goal is to get some of the GameStop mania. On January 25, it sold its other shares to buy four GameStop shares for $ 80. After selling four shares for $ 212 on January 26, he bought six more shares for $ 292, according to the commercial receipts provided.

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

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 for $ 352 and said he intended to use the proceeds – nearly $ 2,500, according to the commercial receipts provided – to pay off some of his credit card debt.

“I want to put myself in a position where I’m not so indebted,” he said. “It hurts my credit score and I want to be able to move elsewhere. So I want to pay off debt with whatever I earn from this. ”

As a forum, WallStreetBets usually raises those who sell, as many want to harness the power of the group to continue the rally. But when it comes to paying off debt and achieving other savings goals, some users have changed their tone.

A Redditor posted a screenshot of what he said was his last student loan payment: $ 23,504.45 from GameStop transactions.

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

For some traders who intend to use their efforts to eliminate their student debt and pay other obligations, it seems worth the bet.

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

“I knew there was growth and potential,” she said. “I told everyone I knew, ‘I see 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 federal student loans have stopped payments during the pandemic, according to Mark Kantrowitz, author of “How to Get More Financial Aid from College.”

Some traders have begun to predict earnings for money milestones that are out of reach.

Anthony Eleftheriou, an 18-year-old student living with his parents in London, first started investing a month ago. He bought 25 GameStop shares for $ 50 on Jan. 22 and said he intends to hold them for the time being, perhaps even using his earnings to pay tuition fees.

“I wanted something rich, but now it’s turned into a long-term thing,” he said.

Joe Ballent, a 32-year-old assistant doctor working in Cheyenne, Wyo, said he prioritizes other goals over student loan debt with his GameStop earnings: First, paying for his upcoming wedding, and then saving up to buy a house. Both seemed inaccessible before the GameStop rally, he said.

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

Mr. Ballent started putting more money on the market last year, first with RobinHood and then with accounts at Vanguard and Schwab. He has now invested more than $ 10,000 in GameStop, according to the commercial receipts provided. He slowly sells shares, using some of his earnings to pay for the wedding and to help his loved one’s medical expenses. Once he sells completely, he wants to start hunting for homes.

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

Following RobinHood’s decision to join other brokerages in limiting fast-growing stock transactions, Miss Spahic said she intends to close its positions and delete the application. She is still following the conversation on Reddit to determine which brokerage she will choose as a replacement.

“I follow closely what each of them is saying,” she said. “I’m waiting to see who comes out first and says they’re for people.”

Meanwhile, Mr. Kovacs and others keep their eyes on WallStreetBets.

“I think people recognize that there is an opportunity here,” he said. “Look at these gains and watch what happened earlier this week and say, ‘Is everyone collectively right or is everyone collectively wrong?’ ” Like me.”

—Marco Quiroz-Gutierrez contributed to this article.

Write to Julia Carpenter to [email protected]