Just divorced. Not fun.
$30k in debt. Freaking me out.
I have an old 401k that I rolled over from a previous company into Sharebuilder. Value $8,500.
I’m very inclined to withdraw the cash with penalty and pay off a higher interest credit card (13%). I know that mentally and emotionally it will make me feel better to give a big “peace out” to a credit card that I cut up a while ago.
I’m torn and looking for advice. There’s no way I’m making 13% on the money within Sharebuilder.
My financial goals: pay off all debt as soon as possible, and live a simple, cash lifestyle with lots of savings / investment. Looking at all options: cutting back on $tupid crap, selling stuff, and maybe even freelancing to make more money (even though I make $80k+ at my full-time job). If you’re wondering, I have a Simple IRA that I contribute to every month with my current employer.
Any help is appreciated…
Before you answer…
- Remember, there’s often a difference between the best decision and the financially correct decision.
- You can also get huge advantages by pre-paying your debt.
What would you tell Jason? (And watch the comments to see how they differ from your own opinion…that’s the most interesting part.)