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 Posted: Tue Jul 15, 2008 1:46 pm Subject: Hello All New To Forum ! |
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Hello all i was wondering if taking out my retirement from a previous job thats earning 7% to pay off all my unsecured credit is a good idea or not ? I have a new job that iv been at for 2yrs now and im 38 so im also looking towards the future.
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raider1man
Joined: 15 Jul 2008
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| Posted: Tue Jul 15, 2008 3:49 pm Subject: |
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Most experts would advise against using your retirement to pay unsecured debt. Are your accounts current right now?
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alias1958
Joined: 31 May 2008
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| Posted: Tue Jul 15, 2008 3:55 pm Subject: |
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Hi, welcome to the forums!
I wouldn't reccomend using your retirement to pay off debts..The penalties in the long run could end up being really nasty!
Have you considered a consolidation company? That could work for you..
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finsfan13
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| Posted: Wed Jul 16, 2008 6:13 am Subject: |
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Yea i realy dont want to use it, but i realy dont see any alternitive to my solution . And no i havent yet seeked any professional help yet im just looking around right now at some places like ( Phoenix Fin. Services or Superior ) and its been about a month now that im behind!
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PinkLady
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| Posted: Wed Jul 16, 2008 6:27 am Subject: |
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You will lose about 1/2 of whatever you withdraw to the government in taxes, penalties and interest. So if you withdraw 10k then you will only end up with about 5k to use for whatever you want. Basically it is a very bad deal for you.
Some companies will let you borrow money from your retirement. It will cost you less in the long run but it still isn't a very good deal. I would try to settle the debt without touching protected retirment accounts.
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DOLLARSandSINCE
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| Posted: Wed Jul 16, 2008 8:50 am Subject: |
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Mine is not a 401 , if i take it out its all or none . But i do have to pay a penalty and taxes at end of year on the amount !
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