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RichMcClure

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Pay off credit vs eliminate child support arrears?
Built up about $8k of child support arrears due to being laid off three times in the past five years. I also have $8k in debt. Currently my income is just under half of what it has been in the past years and this has completely wrecked my savings. I have almost $10k in cash value on a life insurance policy. Child support obligation ends in May "15.

What is the best option? Using the cash value to pay off the child support arrears and being totally clear of that monthly bill in May or paying off the debt? Is it smart to use the cash value in the first place?

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While your child(ren) may be old enough for you to stop paying child support next year, any arrearages in child support will remain totally due and collectable until paid in full. You want to get those caught up as quickly as possible.

If you are married again, I recommend not cashing in the life insurance because few people repay that loan and the familty ends up getting less in insurance proceeds when it is needed.

You might want to Google "Dave Ramsey" and check out his ideas on debt repayment, because he does have some really sensible ones.

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