View Single Post
  #17 (permalink)  
Old 07-11-2006, 10:35 AM
jamreed02's Avatar
jamreed02 jamreed02 is offline
$ Saving Fifth Grader
 
Join Date: Jun 2006
Posts: 43
Points: 761.80
Donate
Default Re: 401k: Cash out to pay credit card debt?

I totally agree with the others. Don't cash it in... you lose so much money doing that. Roll it into a traditional IRA. The investment is going to bring in some interest, which will at least help counter the interest you'll be paying on the credit cards, if not completely overshoot it. I highly recommend Dave Ramsey's website (google it) It'll give you the basics, and then go to the library and check out his book (don't spend money you don't have). Then check out the frugal ideas on this site, and pinch pennies till your fingers hurt. You may want to read the Complete Tightwad Gazette for ideas. To start brainstorming, use the three frugal rules: 1. Buy it cheap, 2. Make it last, 3. Use it less. One great resource I've found for the frugal is www.freecycle.org
Reply With Quote