pay credit card debt
Is it wise to take money out of a simple ira to pay for credit card debt?.?
There’s not too much in there. My penalty would be $550 but my credit card debt is over 10K. I’d like to pay off at least half. Currently a student so paying credit card is a chore. Working only part time now.
Credit card A: about 9.99% interest on 5K owed.
Credit card B about 14% interest on 6K owed.
Also, is it wise to open another (third) credit card with 0% interest to put the remainder of my cc balances? My credit card B was opened for that purpose but the date has passed so the APR is now at 14%. And when is it good to close an account, better to leave open with a zero balance?
If you can get another credit card with a 0% rate for even a year then do so and slide your balance to that one (or as much as you can without going over 50% of the credit limit on the new card).
It is better to leave a credit card with a zero balance open because if you close it you will also lose the credit line, which means that your total available credit lines will be less, and withthe balance owed on other cards remaining the same, the ratio of available credit to debt will be lower and would negatively affect your credit score.
The hit you will take by making a premature withdrawal from an IRA will not be worth it.
