UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: Re: Which Option is Best? Date: 3/1/2007 7:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
sparrowhawk43: "I must be missing something fundemental here. My IRA is ~$14k. My debt is ~$9k. As I stated earlier, "My theory is that I can put the funds back into my IRA with the money that I was using to pay the Min. on the CCs." This means that I will have ~$30 in my IRA in ~10 years."

No mention of federal tax bracket, or state income tax, so SWAG 25% federal rate, 10% penalty and no state income tax.

65% of 14k is $9,100 --- just enough to pay the credit cards, lose 35%, or $4900 to current taxes and penalty.

14k at returning 8%/year would be worth roughly 28k in 9 years and just over 30k in 10 years.

You would need to be disciplined about no re-incurring CC debt (but it sounds like you are if all this current debt came from a divorce) and disciplined about investing the former CC minimums in an IRA, which I have less sense of.

"I cannot not get another creditor to give me a 'loan' for more than $3k."

Ok. How is the debt divided between the 34% card and the 14% card? 3k may not be enough to cover the 35% card, and three loans would create worse cash flow problems. Just asking.

Without addressing the income side, I currently have no other ideas about this issue.

Hope this helps. Regards, JAFO

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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