Using Savings to pay Credit Card Dept

Discussion in 'Credit Talk' started by jackadam, Feb 21, 2017.

  1. jackadam

    jackadam New Member

    Question first:
    Based on my statements below is it wise to cash out one of my
    ROTHS or something and pay down the Credit Cards
    Then if disciplined I can make higher payments to the same ROTH
    or works 401k or somewhere

    $25,000 various Credit Card Dept

    Now myself and wife have a few different savings going on
    Wife ROTH
    Wife work 401K
    ME work 401K
    2-3 Stock investments with local broker
    ME Good work Pention plan going

    Anyway due to interest rate and other reasons the Credit Card
    Dept just is not going down ( Been trying the last 3 years )

    I believe some of it is due to to much savings for our income
    I know can't ever save to much .. But just not able to get rid of
    the Credit Card debt and just seeing it get worse
    ( Need house repairs and new ( used ) car pretty soon, trying to get
    kids through college )
    Our Cash ( bank ) savings is only about 2 months income ahead

  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    In general, it's never wise to tap your retirement accounts. However, you can withdraw contributions from your ROTH at any time without paying taxes or penalties, so if it's the only way to finally get rid of your high-interest credit card debt once and for all, you could do it. If there's some way to adjust your budget and start making large enough payments on the credit cards without tapping the ROTH, that would be a better move. Sorry for the delay in response- missed your post somehow!

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