Previous thread is here for more context if needed:
http://ift.tt/2nFQZgo
Between my wife and I, we have 9 open credit cards with approximately 33k in debt (Min due is $1210/mo).
We have been cutting up the cards, cancelling subscriptions and tightening up our budget, but we barely make more than what we owe for bills (not even including food, gas, etc).
As it currently stands, we don't have enough income to pay off more than the minimum...and we're struggling to even do that.
I have $32,000 in an inactive (former employer) 401k. If I take the cash (minus 30% penalty taxes) I'd be able to pay off about 22k on the CC debt...and if I keep paying the $1200/mo we're already paying we could have the rest of our debit paid off in 11 months or so.
Then I could bump my contributions to my current 401k to 15-20% (it's 6% now, just enough to get the full benefit of employer match) for a year or two to try to build it back up.
Thoughts? Am I stupid to do this?
(Well, stupid...er than getting myself into this predicament in the first place)
Submitted April 04, 2017 at 12:24PM by Throwaway890987 http://ift.tt/2nZcR8N
