Long story short I'm a recovering alcoholic. Spent years making less than 40k/year, drinking, and racking up credit card debt. I have good credit (730ish) and my cc has a very low interest rate, but it's at like 9k right now.
A year ago I met my current partner and my life has turned around. He got a great job working from home and I just got hired on also. We'll both be making 40k a year from home.
I have an old 401k from a previous job with 9.9k sitting in it. Haven't messed with it since 2017 when I lost that job. I thought about taking the money out to pay off my debt, but I'm getting conflicting information. IRS website says it's taxed at 10%, vanguard looks like it's taking out 20%, and someone said it gets taxed like 50%.
Should I use this money to pay off my CC debt? If so what am I actually getting taxed on it? Also any general advice for getting my finances on track is helpful in addition.
Edit: also no car payment right now, and I don't have to pay rent for the next year (living in grandmother's house until we have to sell it since she's in a home now)
Submitted March 21, 2022 at 01:08AM by DeadPhishes https://ift.tt/I4z2HoY
