Should I get out of my mutual funds now or wait?

Yes, but only when you have something better to invest that money in, with a higher potential return. e.g. property, stock etc.
Otherwise you might end up spending the money.

Personally, I think the best possible investment is to payoff debt -- especially credit card debt.

Any investment vehicle carries a degree of risk -- even the most conservatively managed mutual fund. Paying off debt carries zero risk.

With the exception of a 401K where you have an employer match, investing in anything is an inferior choice -- and a higher risk -- than being debt free.