I have $9K in credit card debt. I recently quit a position and saved $12K during my 4 years there. I can either keep my money where it is, and if I ever return there or any other Texas state job, my savings and years of service would pick up where it left off. In fact, after 5 years, my money would double. And, since I already have 4 years, in one more year, I would have $24K. My other option is to cash out. There is no guarantee I will ever go back there or any other state job. Plus, I really want to get rid of this debt. If I do cash out, I would have to start at ground zero with savings and years of service. I don't want to be hasty and cash out, since this is my only savings. But, it doesn't make sense to leave the money there, if I have this looming credit card debt. What do you think I should do?
2007-03-04 15:38:43 · 8 answers · asked by TwinkaTee 6 in Business & Finance ➔ Personal Finance
The only way the money would double is for me to be return to a state job and work for another year.
2007-03-04 15:49:28 · update #1
If I withdraw, there is a 10% penalty, as well as a 20% IRS mandatory tax.
2007-03-04 15:50:52 · update #2
Since the only way the money doubles is if you return to a state job, I'd take the cash out and pay off the credit card debt.
Unless the investments are making at least as much interest your credit card debt is costing you, then you're really just going in the hole on it anyway.
I know what you mean about starting all over there, as I've been there myself. But if you take out this money and get the debt off your back, you should be able to put the money you were paying toward the credit cards into savings of one type or another.
And this time, you can choose an investment that isn't tied to staying in a certain job or with a specific employer.
2007-03-04 16:03:39 · answer #1 · answered by ISOintelligentlife 4 · 1⤊ 0⤋
Ok personally, I would cash out since your not sure if you would go back. Second, take the extra $3k and put it in a savings account, that way you dont have to start at zero. You will have your debt paid off and have a little savings to work on. And wherever you end up working, take a little out of your check each paycheck and put straight into savings. In time you will be back where you started.
2007-03-04 23:44:34 · answer #2 · answered by jessica 2 · 0⤊ 0⤋
I would have to agree with Muffin on this one, continue paying off your debt for a year, wait for your money to double then cash out. Excellent idea.
2007-03-04 23:46:35 · answer #3 · answered by TNA Ambassador 6 · 1⤊ 0⤋
Pay off The Card And Trash It ..It's Costing More money Than Your Gaining
2007-03-04 23:42:44 · answer #4 · answered by Dave A 2 · 0⤊ 0⤋
i would pay your monthly payments for the next year, then wait for the money to double and then cash out and pay off your debt. then you would be ahead that much more money....
2007-03-04 23:43:11 · answer #5 · answered by BJC 4 · 1⤊ 0⤋
YOU CAN TAKE IT OUT AND PAY OFF DEBT...
IT YOU RETURN TO STATE JOB YOU ARE ENTITLED
TO PAY THAT MONEY BACK FOR THE YEARS YOU WITHDREW..
ITS WIN WIN FOR NOW...
2007-03-04 23:42:57 · answer #6 · answered by cork 7 · 0⤊ 0⤋
If you're not sure, you can always go half-n-half. Half the debt and keep the rest.
2007-03-04 23:47:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Don't gamble, get out of debt..
2007-03-04 23:49:33 · answer #8 · answered by Anonymous · 1⤊ 0⤋