ST Alpha - "If it's a one time withdrawal and you behave responsibly with the CC from then on, I would." (Reading a Post)

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In response to "color of money chat q: should they take money out of their retirement account to pay down high-interest credit card debt?" by poxie

If it's a one time withdrawal and you behave responsibly with the CC from then on, I would.

Posted by TWuG Oct 27 '11, 10:17

The CC debt is probably racking up interest at three or 4 times the rate of interest earned on the IRA.

If you continue to carry the CC debt you are losing more every year than you are earning in interest.

Responses:

and pay the tax penalty on withdrawal? -- nm - loosilu Oct 27, 10:20 2
- On $2k I doubt it's high enough to offset the gains you'd make in paying down the CC debt. -- nm - TWuG Oct 27, 10:46 1
  - I think it almost certainly is, actually. -- nm - loosilu Oct 27, 10:48

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If it's a one time withdrawal and you behave responsibly with the CC from then on, I would.

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