SavingsTalk.com

ermak

Hi All,<br /><br />First off thank you for reading this.<br /><br />My question is, should i cash out my IRA early to pay off credit card debt?<br /><br />Here is my situation:<br /><br />I am 25 years old and i have about $19k in credit card debt @ 17%.<br /><br />I have the following saved via IRAs:<br /> - 401k = $40k<br /> - SEP-IRA = $12k<br /> - ROTH-IRA = $13k<br /><br />Total ~= $65k in retirement accts<br /><br />Does it make sense to cash out say 2 of my IRA's EARLY in order to get this debt off my back? <br /><br />The way i see it is my IRA accounts are NOT making more than im paying in interest and basically it is nonsensical to keep bleeding this money. Only problem is based on my research, i see no less than a 10% penalty on my IRAs... so this will be a very costly way to eliminate my debt.<br /><br />This debt is a real PAIN in my ass as i am currently unable to save money due to constantly paying the Card (and other recurring bills of course). <br /><br />Any input will be GREATLY appreciated OR if you have an alternate suggestion, I would love to hear it. <br /><br />Thank you!!<br />