No. of Recommendations: 0
The same as many other people, my wife and I have created a monster. More accurately, *I* created a monster. Before we got married, three years ago, I was in school finishing up my bachelor's degree. I should say that I am 47 years old, and went back to school late in life, after a divorce. While in school, I ran up a credit card debt of a little over $10,000. I had convinced myself that I would be able to pay it off quickly after graduation. I was wrong.

Presently, we have managed to run that debt up to $25,000. We have been able to move most of that to low-interest cards, with an average of 5.9%. However, in order to keep that rate we'll have to keep finding low rates from other companies. We pay at least twice the minimum payment each month.

The up side (if there is one) is that we have a little over $70,000 in IRA's that the two of us have built up over the years. There are no loan privileges associated with these IRA's. I am still thinking that we would be better off in the long run to take the money from IRA's to eliminate our credit card debt. This would allow us to be relatively debt free, other than house and car. In addition, we would be able to increase our contributions to our 401k plans to the maximum. We would, of course, have to pay the 10% penalty and taxes associated with withdrawal before age 59 1/2. I think we're still coming out ahead of the game.

What do some of you other fools think?
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