Should I withdraw early from 401k to pay off credit cards?

I have roughly 16000 in credit card debt that is driving me crazy. Also I have about 30,000 in a 401k. Will withdrawing from my 401k early and paying off credit card debt offset the penalties and interest in the long run?

Should I withdraw early from 401k to pay off credit cards?

I would deal with the credit card issue by itself. People I%26#039;ve known who have done what you propose just run up their credit card debt again. They have learned nothing. It is better to learn how to control your finances in the long run then take the easy way out. Also if you take money out of your 401 k you will have to put off retirement that much longer.

Should I withdraw early from 401k to pay off credit cards?

no, its best to treat 401K money like its not available.

Should I withdraw early from 401k to pay off credit cards?

Very tough to touch that 30K because you really need to leave that alone so it can grow. It%26#039;s a major step backwards to take money, in this case half, out of your retirement savings. You have to do something however to get rid of this CC debt. You should look at something you can remove from your life to give you extra money or you need to add something, like a part time job. I would lean toward taking a part time job and sending each paycheck toward paying off this credit card. You could probably be rid of this in two years, and then have perhaps 35 to 38K in savings. Of course it%26#039;s all irrelevant if you haven%26#039;t learned how credit cards work.

Should I withdraw early from 401k to pay off credit cards?

Certainly not. There is a 50% tax penalty doing that. You cannot afford to do such a thing.

Should I withdraw early from 401k to pay off credit cards?

No it won%26#039;t offset. Move into a cheaper place for 3 years and use all your extra money to pay down the card debt. First to withdraw the money you%26#039;d have to quit your job or take a loan. You can%26#039;t take an inservice withdrawal to pay credit card debt. So you either sacrifice your income and risk not getting another job or you trade one payment for another. Good thing about a loan is interest rate is fixed at 10.25% and it will be paid off in 5 years. Likely won%26#039;t hurt your long term balance either. But, certainly won%26#039;t be easy as your payments will be larger then they are now. However, if you end up taking a distribution....expect to work about 5 years longer as that 16k will cost you about 200k when it comes time to retire. I%26#039;d say it%26#039;s worth a little hardship now rahter then when you%26#039;re 65

Should I withdraw early from 401k to pay off credit cards?

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NOTTINGHAM LOAN AGENCY.