How to keep paying the credit cards
I have some credit card debt totalling 6,000, I also have a retirement fund i accrued from my previous employer totalling 8,000 the question is to keep paying the credit cards or to withdraw the retirement fund to pay off the cards.
Answer:
Withdraw those retirement funds. The taxes and penalties will reduce it enormously – you probably won’t even have enough left to cover the 6,000. Once that money is taken out, you can never replace it. You’ll have to start over. You’ve got a great start to your retirement savings there. Tax deferred gains will continue to snowball. Reduce your spending to eliminate this CC debt. Perhaps work OT at work or pick up a side job until it is gone.
My best advice would be to pay off the credit card debt really quickly. You need to treat this as an emergency situation. You need to cut all your costs and make sure you pay off at least 1000$ a month.