Should You Borrow From Your Retirement Account to Make Ends Meet or Pay Debt?

Male thinking

A couple of smarty-pants researchers at Ohio State University came out with a very interesting paper about people borrowing from their retirement accounts. When facing money troubles it seems people are too often willing to rob from their retirement accounts to deal with an immediate financial threat. This is the classic definition of hyperbolic discounting. … Read more

Should I Borrow From my 401(k) or Home Equity to Eliminate My Debt?

Question: Dear Steve, I have approximately $150K in credit card debt. I have a 401k worth about $500K with the ability to take out a loan of about $103K. I call it “credit card” debt, but it’s actually two Sofi loans totaling about $83K and the rest is credit card debt. That Sofi loan is … Read more

Should I Payoff My Parent PLUS Loan for Retirement

Question: Dear Steve, I have a parent plus loan with about 17000 left to pay. They are charging me 7.5% I just sold my house and have the money to pay off the loan, my question is Should I. I’m planning on retiring next year and wondering if I should just keep the money for … Read more

Should We Take Money Out of Retirement to Pay Off Mortgage?

Question: Dear Steve, I am 63 years old. Retired. 401 $300,000 + plus pension & SS. Wife 62 retired drawing SS small 401 $45,000. We are retired and need to have more disposable income. We only owe $17,000 on our house with an interest rate of 5 3/4. If I took out money from 401 … Read more

My Retirement Plan Won’t Let Me Borrow Money to Settle My Debt – Quincy

“Dear Steve, I’m thinking of using some of my reitrement to help settle my debt. But my retirement says if I refund the money I will lose all benefits to it. I’m with the Arizona State Retirement System. I do not want to take it all out, just enough to cover my debts. Will I … Read more

Should I Use My Retirement Money to Pay Off My Student Loans? – Cynthia

“Dear Steve, I would like to know if I would be better off paying off student loans with a retirement plan disbursement from former employer I have about $26,000 in SallieMae student loans. I will be receiving a disbursement from a former employer for Profit Sharing and Money Purchase plans. I want to know if … Read more

The Ultimate Debt Consolidation Loan Guide: Getting Approved, Acting Smart, and Being Wise

You hear a lot of rubbish online about getting a debt consolidation loan and a lot of just flat out incorrect information. It’s time to put an end to that and help you get the facts so you can make a good educated decision. If You Don’t Want to Read All of This Post: One … Read more

Should We Get a Debt Consolidation Loan or Borrow From IRA to Payoff Credit Cards? – Christine

“Dear Steve, CC debt 20,000. Mortgage 39,000. Equity about 300,000. credit score under 500. marrried one income $51,000. 4 kids in college. Turned down from first bank for refinance with credit payoff. Currently spending about $700.00/month on CC payments. should we continue to try to get a loan or should we take the money out … Read more

My Parents Are Draining Their Retirement to Pay Their Bills. – Nora

“Dear Steve, My parents have some financial difficulties and I am not sure how to advise them regarding how to get out of debt and stop spending so much from their retirement account. I am living with them but I have credit card debt of about $15,000. We need to know next step overall- if … Read more

What Repaying Your Debt Will Cost You in Retirement – Calculator

This calculator demonstrates the future retirement financial loss you may experience when electing to repay your debt with an extended repayment program offered by creditors, credit counseling, or debt settlement, rather than intervene on your debt with solutions like bankruptcy, which terminate the debt quickly and allow you to resume saving again for retirement. Calculate … Read more

Spent Through 401k Money But Can’t Afford Bills. Husband Unemployed. – Jan

“Dear Steve, My husband lost his job about 4 years ago. We were in debt then and had started to make extra payments to try to get out of debt. With the loss of his income, I went back to just making minimum payments on everything. I took money out of my 401k just to … Read more

I’m Retired and Wonder if I Should Use My Retirement Money to Pay Off Debt. – Karen

“Dear Steve, I am a 62 year old single woman. I retired in June with a fixed PERS retirement pension and am also collecting my social security pension for a total of annual income of about $64,000. I have about $20,000 left in credit card debt that I have been paying down on a fixed … Read more

I’m Unemployed, Looking for a Debt Consolidation Loan, and Paying Bills From IRA. – Becky

“Dear Steve, Consolidating debt to avoid high interest rates or deplete 401K. Have taken on about $50K in credit card debt and have secured mostly 0% interest rate cards that are coming due over the next several months. I have depleted my brokerage savings but still have an IRA and 401K that I could tap … Read more

We Have Great Credit But Want to Take Money From IRAs to Pay Down Debt. – Doris

“Dear Steve, 48 year old female, married, 1 child 14 years olds in 9th grade – college bound. 11 years at job with vested pension, Roth and traditional IRA’s, home owner – 174,000.00 at 6% (fixed VA) monthly payment with taxes and insurance – 1507.00, 800 credit scores, 2 cars financed at 2.5% totaling – … Read more