2007-09-03 08:45:30 · 7 answers · asked by teacup 1 in Business & Finance ➔ Personal Finance
No, file bankruptcy if you can, you can protect certain assets and others cannot be taken to pay creditors. Retirment assets are one of them. If you own a home you would be better off taking a mortgage out to pay down the debt if your home's value exceeds those that you can protect in filing. Why don't you consult with a BK attorney on what to do about that debt. It is better to keep what can be protected and file than to pay early withdrawal fees and give up your retirement savings.
2007-09-03 09:39:56 · answer #1 · answered by N R 1 · 0⤊ 0⤋
If your retirement account is a 401k you can borrow money without penalty as long as it is paid back within a certain amount of time. If not, I would look into getting an unsecured loan to consolidate and pay off that credit card debt. You may even be able to pay that loan back when you sell your house. Given your high credit score that seems like a good option, the only problem might be providing proof of income. And make sure that your payments on the loan are something you can afford. I think that would be a much better option than cashing out your retirement account.
2016-04-03 01:33:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No. Don't take $20K out of your retirement for those credit cards. That will only leave you with 50K for your retirement; that's not a lot of money. You might want to consider getting a job that you specifically use all of the money you make to pay off those credit card bills.
You need the 70K to live off of. Even 70K is not a lot for your retirement. If you have not yet retired, I hope that you are still working or are considering continuing to work -- you really need more money in your retirement account.
Good luck.
2007-09-03 08:55:40 · answer #3 · answered by Diane 2 · 0⤊ 0⤋
You can currently retire and pull $10,000.00 per year for 7 years, and I think you will live longer than 7 years after you retire. If you need $20,000, you will need to pull $23,000 to pay the taxes, which will leave you enough to pull $10,000.00 for 4.7 years.---Not a very secure retirement, make the minimum payments to your debts and dump as much money in your retirement accounts as you can while your still working. At the risk of being rude (at our age we need to consider death) if you die with debt and have no estate, no one is responsible for your debt. If you live long enough to pay off the debt...great, but most important is that you can buy food and housing while you are still living.
2007-09-03 09:13:15 · answer #4 · answered by Mike M. 5 · 0⤊ 0⤋
teacup, at 60 pulling 20k out of 70k is financial crazy. get two more jobs even minimum wages, attack the bills, get a real budget apply it. visit daveramsey.com to learn what not to do. go with knowledge that u can get out of debt slavery.
cashing out ur retirement will cost in up front taxes and long run cash lost. look forward to working in to ur 70's.
bankruptcy isn't real option, new laws / costs.
2007-09-03 10:26:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, interest on 20,000 card debt will accumulate quicker than 20,000 invested.
Pay it!
2007-09-03 08:53:48 · answer #6 · answered by The Wise One 3 · 1⤊ 1⤋
Get advice from a good accountant, not from us.
2007-09-03 09:56:18 · answer #7 · answered by jdkilp 7 · 0⤊ 0⤋