Reply to Earning Well but Drowning in Debt...how to dig out?

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[quote=Anonymous][quote=Anonymous]OP again. A PP asked if we have any emergency savings. We do have a little. We both have 401k/TSP valued at around $400k total. For retirement. We also have a $50k emergency fund. The question is, do we wipe out the emergency fund to pay off the credit card debt!? Do we cash out the 401k and pay the penalties to pay off the high interest CC debt

At this point, I am tempted to cash out $50k in 401k and pay off the credit debt. Then work on the student loans. [/quote]

Do not cash out the retirement.

You need to yes, use the emergency fund or at least part of it.  Save six months of mortgage payments and then use the rest to pay off the debt.  Now with the cc payments gone use that money to build your emergency fund back up.

Can you also sell the cars?  Can you not take public transport to work?  It may be less expensive if you hire a nanny and sell both cars.  This way you and your husband can both take public transport to the hill. If you work on the hill and live in a rowhouse I don't see how this isn't possible!!!![/quote]

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