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    jowemedo's Avatar
    jowemedo Posts: 2, Reputation: 1
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    #1

    Feb 12, 2010, 05:08 PM
    I'll soon be 59 1/2. Is withdrawing from my 401k to get out of debt a good idea?
    We were a 2 income family for all our married lives. My wife lost her job in February 2009 and is now disabled. We have about $30K credit card debt plus we still owe about $30K on our home and our car is 10 years old. Would it be wise to withdraw from the 401k to pay off part or all of this debt? The interest rate on our home is less than 6%.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Feb 12, 2010, 06:00 PM

    What is your income now, can you afford to keep making the payments,

    What interest rate is your 401 making

    If you pay off the debt do you have the ability not to get back into debt ?
    jowemedo's Avatar
    jowemedo Posts: 2, Reputation: 1
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    #3

    Feb 12, 2010, 08:59 PM

    Income now is about $48K plus what my wife may draw on disability. I believe we can refrain from getting bak in debt. My 401k right now is all in fixed income. Probably 3%.
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