The Motley Fool Discussion Boards
Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Getting out of Credit Card Debt||Date: 11/17/2000 10:52 AM|
|Author: xtn||Number: 49621 of 308369|
I don't see anything wrong with withdrawing 1/7 of your non-retirement savings to pay down debt. But I have a few things to preach about before I condone it.
1. The BEST situation (financially) would have been not to buy a new car yet.
2. If you pay off the cards, can you resist running them back up again? If you run tehm back up you will have effectivly thrown away 1/7th of your fund.
3. Is the Fund continuing to do as well as it has for the last 10 years? Sounds like a good percentage that might be making more than the cards are costing you. If this is the case you are making more than you are loosing so you should leave it in and pay down the cards with your regular income as best as you can.
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