Need advice on paying off CC debt using roth...

[Slug]

I recommend 2 things. First, look into workstudy within your program. 10 hours a week managing the library or computer lab is doable and commonplace. It's not going to eliminate your debt, but it will help a little.

Second, see if you can do the 0% transfer game one more time to push the debt into your second year.

And did you look into work study?

If you are career switching, nailing your first year is imperative and working a part-time job is not. If, after internship in consulting/banking, you feel you're in a good place, a part-time job in year 2 is achievable.

I would still try to do the balance transfer game again.

I was 30 when I started my MBA. That's on the old side. Do not consider deferral.

If all else fails in terms of work study and part-time employment, I'd borrow from my parents to pay off the cards and then pay them back (with interest) with my signing bonus. Do not tap the Roth. You aren't going to have that many years where you have a low enough salary to contribute by law once you have your MBA salary and start moving up.

[dczech09]

You need to take a long look at your decisions here. Is business school absolutely necessary right now? I know some people with MBAs who make less than me, and I make an average income for my area. Business school is a good thing, but I certainly do not think it is worth all of the debt, especially if you already have a bachelors.

If you pay off the CC debt and do not get a job or side income of some sort, guess what? Your CC debt is likely to grow back. Also, if you do not change your spending habits, the CC debt will grow back. So I have two rhetorical questions:
How did you rack up that much debt?
How do you plan to prevent that from occuring again?

As for the Roth IRA, yes you can pull out your contributions at anytime without penalty. Why would you want to do this though? Why pull out your retirement funds to pay off a credit car debt, especially if the debt is just going to grow back?

I do not buy the whole concept that you cannot work while going to school. How do you plan to stay afloat financially? When I was in college, I worked 30 hours per week and I am SOOO glad I did. It helped keep me away from joining the $50,000+ student loan club.

The point is you are not considering your FULL COST of business school. You're only looking at the short term.

[shaselai]

well one reason my CC debt stacked up was me doing a Master's degree - it costed me ~50k or so to cover it all and that is the main reason my cc got that high. I did it between companies so i didn't get much support at all since the companies i worked for requires staying 2-3 years AFTER support and they didn't cover all costs either...so it ended up with me eating most of the cost. The school doesn't offer workstudy/ta or anything school related for MBA students. And with the debt coming back... well i think the loan from school will more or less cover that...

if i were to ask my parents to borrow at their 2.7... should i ask for the whole thing including school fees then or only enough to pay off the cc debt?

[couchrobt]

You can just try the old way of paying debts. Pay more than the principal or more than the minimum. It would move faster. Pricey than what you used to pay but will help.

[Hector]

well one reason my CC debt stacked up was me doing a Master's degree - it costed me ~50k or so to cover it all and that is the main reason my cc got that high. I did it between companies so i didn't get much support at all since the companies i worked for requires staying 2-3 years AFTER support and they didn't cover all costs either...so it ended up with me eating most of the cost. The school doesn't offer workstudy/ta or anything school related for MBA students. And with the debt coming back... well i think the loan from school will more or less cover that...

if i were to ask my parents to borrow at their 2.7... should i ask for the whole thing including school fees then or only enough to pay off the cc debt?

So you already have a masters. What was your major? How much are you making with this masters degree? Apart from the hope of getting higher salary with MBA, what are other reasons for getting MBA?

Its a bad idea to ask your parents to borrow money for your MBA.

[shaselai]

So you already have a masters. What was your major? How much are you making with this masters degree? Apart from the hope of getting higher salary with MBA, what are other reasons for getting MBA?

Its a bad idea to ask your parents to borrow money for your MBA.

well my major is Computer Science. I am making 70ish in upstate NY. I am a bit tired of the programming scene and want to switch to consulting/finance. I could also come back into management as well though... The master degree didnt make a jump in terms of salary for me (i did get bonus) because the company doesnt see degrees as "automatic salary booster". I started taking it 4 years ago because i was a bit young in WE for MBA and I figure it would help me professionally at that time and for MBA towards the future... I want a breath of fresh air and I think MBA will help me switch careers as well as increase pay. New grads are making more and more and younger folks are making more because of their original salary mark... Also I don't want to sit and code forever..

[Hector]

well my major is Computer Science. I am making 70ish in upstate NY. I am a bit tired of the programming scene and want to switch to consulting/finance. I could also come back into management as well though... The master degree didnt make a jump in terms of salary for me (i did get bonus) because the company doesnt see degrees as "automatic salary booster". I started taking it 4 years ago because i was a bit young in WE for MBA and I figure it would help me professionally at that time and for MBA towards the future... I want a breath of fresh air and I think MBA will help me switch careers as well as increase pay. New grads are making more and more and younger folks are making more because of their original salary mark... Also I don't want to sit and code forever..

I think a developer can become manager and manager can switch careers. You are in IT and I saw people with music major managing IT groups. I think reverse is a possibility as well. I agree that doing MBA is a good way to change career specially finance is your interest, but what I am trying to say is that its not the GURANTEE that you will make 80k+ with your MBA. For example, I see people making 80k+ with MS in computer science with no experience and you mentioned that you are making 70ish. I wish you good luck in your future. Just just keep in mind that [if MBA, then salary > 80k] is not true all the time. Having MS and being interested in finance, you must be good at match. You should know that 70k now is a more than 80k after two years if one consider loss of saving during these two years in addition of incurred debt to get MBA.