No. of Recommendations: 7
I have recently found out that we owe a lot in credit card debt.

Well, something's not exactly right with this statement....

If you 'just found out' that 'we' owe a lot of credit card debt - was it your spending or your significant other's spending? Is the debt on your cards, your significant other's cards, or joint cards?

If it's on your cards, or joint cards, or was partly your spending, how did you 'just find out'?

Does it make sense to borrow from my IRA or 401 K to pay off the credit cards?

Well, you are not allowed to borrow from an IRA, so that's not even an option. Borrowing from a 401(k) isn't 'paying off' the debt - it's just moving it from one debt to another debt, and the 401(k) debt has a lot of potential tax issues that, if they occur, will likely cost you a lot more than the interest in on the credit cards would cost. So, it's not a good idea at all.

YOU CAN'T BORROW YOUR WAY OUT OF DEBT!

If you want to resolve your debt problem, you first need to start living within your means so that you don't keep adding to the debt. Then take the extra surplus income you have created by living below your means, and apply it to the debt.

AJ
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