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Outfromunder

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Should I cash out my 403B to pay off my $25000 credit card debt?
I know there's early withdrawal penalty and a tax hit but I don't think it's worse than 14 and 16% interest over three years.

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Never cash in retirement fund!!

Helpful to 1 out of 1 people

That's a retirement fund you are going to need in the future.  Social Security doesn't pay much so having additional funds available will make retirement more comfortable.  Besides, history has shown that the majority of people who cash in their retirement funds for such unsecured debt as credit cards do not pay it back..

Your credit cards are at the 14-16% interest rate?  Try getting a zero interest credit card to consolidate these higher interest cards and get them paid off faster.  Another option might be a bill consolidation loan.

Try living on a cash-only basis for a while so that the cards can get paid off faster.  It might take a bit of discipline, but you can do it if you really want to.  

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