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  1. #1

    Need advice on debt Need advice on debt

    I'm hoping someone can help me out here. I need some advice on paying the following debt off, as in which order and such. I am thinking about taking about $20k out of my retirement to pay some of this off. Here is my layout of finances:

  2. #2
    Thanks for posting.

    first, do you have any cash savings - as in an emergency fund?

    I don't think using retirement funds is the way to go, but others can chime in on that.

    The credit card has to go.

    if you truly have 1500 extra per month, I would pay $500/mo at least towards the credit card. even 1000/mo.

    any chance you qualify for a promotional credit card balance transfer? this is only to ease the hurt of the interest rate, not to delay paying that off.

    do you need two vehicles?

    anything you can sell?

    2nd job?

    have you heard of dave ramsey? the above is kind of his approach to debt.

  3. #3
    Welcome to SA. You'll find we're a diverse group with different backgrounds and experiences. Please understand the cost in penalties and income tax of using retirement funds is staggering. Even worse, the damage to your lifestyle long term as a retiree is horrendous. Retirement sums need time and major run ups to compound sufficiently to support you long term according to current actuarial reports.

    I'm confident if your are willing to make a few short term changes to lifestyle, you can change your trajectory. Are you paying rent or mortgage? Are you willing to give every dollar of take home pay, 'a job!' I suggest you 1st add up how much of your net income has been used up in interest payments to Consolidation loan, credit card sum owed, truck loan and car loan during 2017.

    Jluke makes excellent points.

  4. #4
    Jluke, I typed out a response to you and it says a moderator is waiting to approve it, but I answered you in that. Until it shows, I basically answered this:

    I do have $1k in savings; the reason I am considering borrowing off retirement is because I get a 2.6% rate in which repayment is done through automatic payments every paycheck, and that's a better rate than I'd get anywhere else; the plan is already in place to eliminate the cc; I forgot to add the $500 rent to my list (edited it to reflect), so I actually have approx. $1k leftover net; I'm not sure what a promotional balance transfer is; I need two vehicles for my wife's and my work; we already sold a tremendous amount of stuff to set us up for this stage, so we're done selling; I work 100 hours every two weeks at 12 hrs/day, so I'm fairly burnt out with my work schedule; yes, I've heard of Dave Ramsey, which is why I'm trying to work on his methods.



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