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Personal Finances / Credit Cards and Consumer Debt


Subject:  Getting out of Credit Card Debt Date:  11/17/2000  9:15 AM
Author:  nolalou Number:  49615 of 312185


I'm new to the Fool, but I have some investments. These are a Fidelity Mutual Fund opened about 10 years ago, and retirement funds from my employer (TIAA/CREF) with a voluntary monthly contribution from my paycheck. The Fidelity Mutual fund has more that tripled in value since I opened it.

The problem is I have been slowly building up credit card debt to where I owe several thousand dollars. I have over the years moved from one card to another when a better interest rate is offered, but it hasn't helped much. A recent purchase of a new car means that my monthly payments to the credit card companys have been reduced. (but I am paying more than the minimum).

The question: Is it better to liquidate some of my non-retirement mutual fund investment, use it to
Pay off the credit cards, (and cut up all but one card, to be used only for emergencies). Or, would I be better off borrowing against my retirement funds, or some other means of securing a lower interest loan to pay off the credit card debt? Note: The amount I owe on my credit cards is about 1/7th the amount currently in my non-retirement mutual fund.

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