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Hi,

I have $ 4,531.00 credit card debt on two separate cards (one with 9.90% int. and the other has 1.9% intro rate until November and 13% thereafter and the amount is pretty much evenly divded between two cards. Also $ 3,000 of that amount is medical realated charge, but it is cc debt now.)

I have about $ 2,500 in my savings account and $ 2,000 in stocks (which so far I lost about 20% of my initial investment on).

I was thinking cash out my savings and stocks to payoff the cc debt, but I like to have some money in my savings account although it is not very much. I have 401k account that I can take a loan from. Should I go that route? Or should I make fixed payment every month to pay those off in about a year and half?


I'm a fan of keeping some money liquid and available in the event of an emergency. So my suggestion: don't cash anything out, but keep paying the cards down aggressivley until they are paid off. I strongly encourage you not to touch the 401(k). I'm not sure of your income situation but it sounds like you've figured it will take about 18 months to pay it off. Just be patient, and the 18 months will be over before you know it!
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