Should I Use Retirement Savings To Pay Debt?

Should I Use Retirement Savings To Pay Debt?

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[kimberlygriffin]

Never Never Never Touch the retirements Money! Just don’t even think you have that money! 😬

[InvestingHustler]

I personally would never touch my retirement money to pay off debt 🙅🏽‍♂️ might end up regretting that when you’re old

[Ali-Muscle]

Question: should I pull out my ira to pay off my chapter 13 that I’m already in ?

[Kureni]

well it's been over 2 years now so does anyone know if she is debt free now?

[brittanyd]

If the interest rate combined is 24-37% on your debt wouldn’t it make since to cash out 401 k to save on interest and then build your 401 k back up?

[rosen]

"Hey Dave I want to borrow money at 30% interest"

That isn't exactly right unless the money you take out would **never** be taxed, right? And it'd only be 30% interest, if the alternative was paying it off in exactly one year [where Dave and the caller seem to think closer to two years].

[highhighbyebye]

I'm tempted to do the same sometimes but I know it's not worth it. Shouldn't have much longer.

[flowergrowersmith]

In Australia you can't access your retirement funds (superannuation) before you retire unless the circumstances are extreme. Perhaps the US could consider the same thing?! It must be very tempting to raid that little honeypot, even with the tax penalties.

[darienlenderson]

You only pay the tax and penalty if the money is withdrawn. If you borrow it from your retirement plan, there is no tax nor penalty. You CAN borrow from your retirement to payoff the debt in full. And that makes a ton of sense. You should also stop your retirement contributions until the debt is paid off.

[Liveeachdaytothefullest]

40K in a retirement plan is not enough at age 33. I don't know why she decided to invest in retirement before paying offer her student loan and car loan. You should not start investing money until you are either debt free or close to being debt free.

[albertgomez]

Lol I just pulled out 40k now I'm. Debt free