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I have taken the probably unfoolish step of taking an early withdrawal from an IRA in order to pay off all of our credit cards. Although the taxes and penalties are steep, I feel as though I can finally breathe again, and our budget is within dollars of balancing each month.

BUT, is it wise to keep some accounts open? For example, we are hoping to buy a home within the next year, and we think that keeping our Sears account open (appliance purchases) might be a good choice. I've closed our Capital One credit cards (because I'm pretty sure we've paid more in penalties over the years than we ever charged), but should I look around for another visa or mastercard so we have one open account?

Any thoughts?
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