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In response to
"money now is sometimes better than money later. -- nm"
by
amanda jones
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Michelle's response to the questioner
Posted by
cupixie (aka chris)
Feb 3 '11, 10:24
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Michelle Singletary :
First, I'm so sorry about your job situation. I know it's tough. And I know because I've worked up close and personal with people in our position.
As for cashing out your IRA money to pay credit cards. I'm sure you know it will cost you a lot if your younger than 591/2 because of the 10 percent penalty for early withdrawal. So you would lose with taxes, penalty probably about 40 percent of whatever you take out.
If you can try to hang in there without touching the retirement money. See if you can work out something with the credit card companies.
Besides if things get really bad you may need that money for just basic living expenses (food, shelter, etc.).
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