Ask The Get Out of Debt Experts Retirement Related

Should We Use Retirement Money to Pay Off the Car Loan? – Libby

“Dear Steve,

I am 56 and my husband is 62. We both lost our jobs last year. I am receiving unemployment benefits and my husband has a new job in another state. Our main debts are our home and a car. I have rolled my 401k over into another retirement plan and have just received the paperwork to receive my retirement money in a lump sum.

Should I roll this retirement money over with the 401k money or should I use this money to pay off the car loan and pay a portion on our mortgage?

Libby”

Dear Libby,

I don’t know how much you have in a retirement account but for 95% of Americans it is not enough to care for them when they eventually retire.

That money is there for the future, not to make ends meet now. Is the problem that you can’t currently afford your mortgage and car payments? Please clarify.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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