I have 10,000 of credit card debt. Should I use some of my IRA retirement money to pay this debt?
NO! You could end up paying 40% of that money in taxes and fines. So I would have to take out about $ 15,000 for $ 10,000 to pay the debt. The remainder will in taxes. Not to mention the fact that you lose all that compound interest earning $ 10,000 over the years. What prevents most People of the debt that keep spending more money than they do. They look at the "monthly payments" rather than the total loan debt are leading. People have to stop spending now and focus on being debt free. Please do not use a debt consolidation or reduction of the company. It is not free, lower their payments by increasing the amount of time until you are debt free, and you'll have a hit on your credit score. Or negotiate their debt down after telling should not pay for a time to add another hit to their credit score. Student loans are the only debt they can garnish your wages for non-payment, without to court first. Just list them on a piece of paper or a spreadsheet and follow the plan. If you work the plan, the plan of work for you. A. A sale garage and sell anything you no longer need or want. B. Get a temporary part-time work, if you have one, get another. Here's a plan that can help. If you work the plan, the plan of work for you: 1. Make a budget. Make the budget a week before they are paid. A budget is not a punishment! It is a tool that will free you having to worry about money again. Put everything in your budget. Especially those annual accounts, half-yearly, quarterly or vehicle registration, insurance, etc. Give every dollar that is going to bring home the name of where it goes. Add an emergency fund "category to your budget and save up to $ 25 until you have 1000-1250 dollars. Your emergency fund will help keep you from getting into new debt because of an emergency. If possible, establish a direct transfer to an account savings for emergency fund. In this way it moves automatically and you do not even have to worry about it. You have to cut expenses and live on less than you earn. 2.First catch up with you all the debts and make no payments later. Stop using your credit cards immediately. Do not take more debt. Credit Cards are like quicksand only the death is much slower. Make a list of all your debts in order of higher interest rate to lowest interest. Use cash only for spending from now. 3.Pay the minimum in all its debts and then put your extra money to pay the highest interest first. After obtaining a bore fruit, who put the money paid on debt # 1 (the minimum payment and extra payment) towards debt # 2. That will pay debt # 2 off faster. When that is paid, it becomes three payments of card # 3 and that one will be repaid fairly quickly. For example: To start: Debt # 1 (plus interest): minimum payment + debt additional payment # 2 (average interest): minimum payment Debt # 3 (lowest interest): minimum payment Debt # 1: paid the debt # 2: minimum payment Debt # 1 + minimum payment Debt # 2 additional payment + Debt # 3: minimum payment Debt # 1: pay debt # 2: paid the debt # 3: The minimum payment Card # 1 + minimum payment Debt # 2 + minimum payment Debt # 3 + additional payment. In this way, you get all your fruit, on time and pay less interest. It will also help rebuild your credit because you no longer have any late payments. This works no matter how many different debts you can have. 4. After getting all his debts paid off, add to your emergency fund until you have 6-12 months of income saved. Put the money in an emergency fund of funds money market in a liquid or Bank of America-CD without risk so if you need the money can be done without penalty. 5a. When you have your emergency fund instead, add a category for "fun" budget. Save for a holiday, vacation, a big screen, or dinners out, any goal you want. Remember to enjoy your life. 5b. When you have your emergency fund in place, start saving for retirement. Join the 401 (k) plan work and contribute to the maximum. Your employer probably matches at least part of their contribution, why give up free money? Open a Roth IRA and contribute the maximum on a monthly basis. If you start saving for retirement now, you probably will retire a millionaire. 5c. When you have your emergency fund in place, start Save for your next vehicle. Only buy cars, or other things that depreciate, with cash. Save up to a better car. Thus instead earning interest to pay the interest. You can do it and is not as difficult as you think. Just follow the plan.