I am changing jobs soon and I have 10K in an IRA that I would love to empty and pay down the CC so our overall debt obligations would be less. I know it doesn't make mathematical sense but I want to sooo bad.
I know. If I cashed out I would end up losing around $3250 of my $10K balance. It is just so hard to struggle to make payments when I know that account is sitting there.
~ Melissa ~
‎"We need to find the courage to say NO to the things and people that are not serving us, if we want to rediscover ourselves and live our lives with authenticity."
- Barbara de Angelis
You should look into rolling it into something more lucrative. Contact a financial planner or someone and see if you can get it put into something without the huge penalty that can reap you extremely nice rewards.
I know it seems like a good idea but think of the things you could do with the $3k you are basically throwing away. Good luck with which ever way you go.
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Don't do it - don't do it. I did it once and OUCH the taxes were awful. Not only did I get taxed when I took it out but I also got taxed at the end of the year. Hang tight and keep snowflaking!
Every financial expert will tell you that this is a bad idea, but I'm sure you already know this. That being said... I did that exact thing a few years ago. I was under the pressure of a home equity loan with a rising interest rate and about 20,000 in cc debt with a minimum payment that was about to double due to a change in the payment terms. I was a single woman working 2 jobs, paying all my bills on time, but about to be in the trouble zone. In my case, liquidating a retirement savings account was my best option. I cashed in my retirement, taking that big tax hit on it. I then refinanced my home and included paying off the credit card in the new loan. I was very nervous about the decision, but in the end it was a great relief to have the debt paid off. The money I was pi$$ing away in interest was a far greater amount than the interest I was earning on the retirement fund. At least now I have some room in my budget to put money towards retirement again.
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Kate
I know. If I cashed out I would end up losing around $3250 of my $10K balance. It is just so hard to struggle to make payments when I know that account is sitting there.
It's not just sitting there.
It's waiting...waiting for you...waiting for you to get old & retire! :)
~ Mom to 5 ~
it's a bad idea. (sometimes you just need the reinforcement, right??).
good luck with your new job!
-andi
You should look into rolling it into something more lucrative. Contact a financial planner or someone and see if you can get it put into something without the huge penalty that can reap you extremely nice rewards.
I know it seems like a good idea but think of the things you could do with the $3k you are basically throwing away. Good luck with which ever way you go.
Please click here to visit my website to fulfill all your Gold Canyon candle, personal care or home cleaning needs. Also if you want to be a rep, I am always available!
Please click here
No no no no no!
Just remember, you are young now that you can work and eventually pay off your debt. You can't borrow for retirement!
Good luck with your new job!!!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -
That being said...
I did that exact thing a few years ago. I was under the pressure of a home equity loan with a rising interest rate and about 20,000 in cc debt with a minimum payment that was about to double due to a change in the payment terms. I was a single woman working 2 jobs, paying all my bills on time, but about to be in the trouble zone. In my case, liquidating a retirement savings account was my best option.
I cashed in my retirement, taking that big tax hit on it. I then refinanced my home and included paying off the credit card in the new loan.
I was very nervous about the decision, but in the end it was a great relief to have the debt paid off. The money I was pi$$ing away in interest was a far greater amount than the interest I was earning on the retirement fund.
At least now I have some room in my budget to put money towards retirement again.
I done it and I deeply regret it.
Norma
"Patience is the best remedy for every trouble"- Plautus
NO!
Use it to feel financially safer in your mind. It will be there when you are done paying the debt and you can add to it.
This is the easy way and you need a hard way to learn. You will appreciate it that much more when your debt journey is complete.
Good luck with the new job.
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