No. of Recommendations: 4
>> I have recently found out that we owe a lot in credit card debt.Does it make sense to borrow from my IRA or 401 K to pay off the credit cards?

Hi Dede,

I read through your thread (which veered off to the subject of medical debt) and noticed with dismay that you haven't posted again.

I hope you are finding ways to pay off your debt which won't harm your future. I paid off over 40k in credit card debut, but early in my misadventures of debt and poor financial habits I borrowed against my 401(k), and later drained it (poor choices on my part because I have less money for retirement and the cost of living keeps going up and up). Later I racked up even greater cc debt.

I have been debt free since October 2007 and am working on funding my retirement while "living below my means". I've always had a "spend it until it is gone" mentality (be it card cards or cash).

Now that I'm back to living on a monthly budget I've recently switched my charity/cause column from annual to monthly (and upped the amount). I am excited because this means I now have 12 different charities or causes I can contribute to in a year instead of just one. I couldn't have done without budgeting.

When you are debit in debt I believe that the first step is to figure out where your money is going. Sometimes you will be amazed at how much you've been spending in a certain category. The second step is to create a budget so that you can decide where you want to channel your money. The people on this board can help you with this.

I hope we will hear from you soon.

Sincerely,

Shire
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement