What to do - pay off small card OR...

iVillage Member
Registered: 08-15-2004
What to do - pay off small card OR...
3
Thu, 01-08-2009 - 6:58am

Okay, I am considering cashing out an old retirement account that I have.

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Thu, 01-08-2009 - 7:46am

Hi Nancy - between taxes and penalties, cashing out a retirement account to pay debt is the equivalent of paying about 40% interest.

All my best,
Danni

iVillage Member
Registered: 09-07-2003
Thu, 01-08-2009 - 11:13am

Nancy ~


If you choose to close out the account, I would use it to pay the card with the higher balance.

Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 10-16-2007
Thu, 01-08-2009 - 11:25am
I definately would not take the money from the retirement account. I did this twice and paid BIG TIME!!!! I would just keep paying the cc's, and when you get extra cash throw that on the cc's. Tax time is coming... do you usually get a refund? that could be used to pay down those cc's. It is your decision but you are giong to pay more for taking that money out of the retirement fund than anything.
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