Home > CC2


May 28th, 2017 at 02:52 am

I have gotten CC2 down to $820, I have an 401(k) with an old company I worked for that has about $900 so I'm going to withdraw it, pay the taxes and pay off the CC. I wasn't with the company long when I signed up but either way, it's enough to pay off this CC.

In other news, it's been a relaxing weekend, enjoy your holiday everyone. πŸ‡ΊπŸ‡Έ

4 Responses to “CC2”

  1. snafu Says:

    Amber there are so many negatives to cashing out a 401[k] I hope we can persuade you to change your mind. I certainly understand transferring what ever the sum to a current plan or opening a low cost plan with Vanguard or Scotts that seem to have inexpensive promos just now.

    When you cash out a retirement plan there are penalties, fees and taxes added that crush smaller amounts. No need to leave it as an orphan with a former employer, the most important point of retirement savings is to let it grow over the long term of working life.

  2. Amber Says:

    SNAFU I actually have a 401(k) and IRA that I contribute to, you're right I should just transfer the funds. I just want this debt paid off.

  3. rob62521 Says:

    Amber, as much as you want the debt paid off, I agree with Snafu...there are taxes and penalties to think of if you cash this out. I would roll it over into your IRA that you have and look for other ways to save money to pay off the credit card.

  4. LuckyRobin Says:

    I think you'd lose about 40% by the time it was done being taxed or penalized and it wouldn't leave you with enough to pay that credit card off in full anyway.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]