Reply to Is it ever a good idea to use retirement money to pay off debt?

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Reply to "Is it ever a good idea to use retirement money to pay off debt?"

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[quote=Anonymous]Penny wise, pound foolish would be a person who coupons aggressively (penny wise = smart with small transactions), while buying Louis Vuitton bags for her toddler to play with (pound foolish = not smart with big transactions). The meaning being it doesn't make a difference if you are good with the little things if you blow it on the big things.

This situation is not a penny wise pound foolish situation. This is a situation where a manageable amount of debt can be consolidated or dealt with in a myriad of ways with options available to OP with a little bit of work. How long would it take for the 13k debt to incur another 5k of interest? Because the liquidation of the retirement account will lose 5k in an instant. 13k is not a small sum - it could be 192k at retirement age if the market averages 8%. How many extra years of working will it take for OP to make that up?

Money management is all about financial sense and delayed gratification, NOT allowing feelings to get in the way. OP just needs a plan and to start acting on it.[/quote]

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