So I know this is a bad idea but . . . .

iVillage Member
Registered: 01-06-2010
So I know this is a bad idea but . . . .
11
Tue, 01-26-2010 - 5:19pm
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.






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iVillage Member
Registered: 08-24-2007
Tue, 01-26-2010 - 5:22pm
I felt the same temptation when I had $5,000 left on the card.

Kate


empty purse

iVillage Member
Registered: 01-06-2010
Tue, 01-26-2010 - 5:28pm

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.







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iVillage Member
Registered: 01-12-2010
Tue, 01-26-2010 - 7:20pm

It's not just sitting there.
It's waiting...waiting for you...waiting for you to get old & retire! :)

Melissa
~ Mom to 5 ~
~ 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
iVillage Member
Registered: 01-20-2010
Tue, 01-26-2010 - 8:12pm

it's a bad idea. (sometimes you just need the reinforcement, right??).

good luck with your new job!

-andi

iVillage Member
Registered: 01-15-2010
Tue, 01-26-2010 - 9:35pm

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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iVillage Member
Registered: 06-25-2006
Tue, 01-26-2010 - 10:20pm
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!
iVillage Member
Registered: 04-10-2003
Wed, 01-27-2010 - 8:10am

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 -

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iVillage Member
Registered: 06-12-2003
Wed, 01-27-2010 - 8:12am
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.
iVillage Member
Registered: 10-01-2008
Wed, 01-27-2010 - 10:00am

I done it and I deeply regret it.

Norma


"Patience is the best remedy for every trouble"- Plautus


iVillage Member
Registered: 11-14-2008
Wed, 01-27-2010 - 11:10am

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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