Retiring, $40,000 in Credit Card Debt, No Savings, What Should I …

Sep 28, 2018 · Q. I’m 65 years old and my wife is 59. We’ve got about $40,000 in credit card debt and are planning to pay about 90% of it off with remaining 401k money. We live on a tight …

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Retiring, $40,000 In Credit Card Debt, No Savings, What Should I …

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Sep 28, 2018 · Q. I’m 65 years old and my wife is 59. We’ve got about $40,000 in credit card debt and are planning to pay about 90% of it off with remaining 401k money. We live on a tight …

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How I Paid Off More Than $40,000 In Debt - Fidelity Investments

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May 21, 2024 · I saved $1,000 for emergencies to start rebuilding my emergency savings. Most importantly, I paid off about $44,000 of credit card debt and a variable rate home equity line of …

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Should You Lower Retirement Contributions To Pay Off Debt?

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Apr 2, 2024 · "Diverting some retirement savings to paying down credit card debt can ... let's say you lower your retirement contributions so you have an extra $200 per month to put toward …

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How Can I Pay Off $40,000 In Credit Card Debt? - WalletHub

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Oct 30, 2024 · To pay off $40,000 in credit card debt within 36 months, you will need to pay $1,449 per month, assuming an APR of 18%. You would incur $12,154 in interest charges …

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Tackle Your Debt Before Retirement - Kiplinger

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Aug 11, 2021 · In all, the Lees racked up about $72,000 in credit card debt and a car loan on top of their $582,000-plus mortgage. "We had so much debt," says Lee, a social worker for …

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Is It Smart To Use Savings To Pay Off Debt? - Experian

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Jan 11, 2021 · For instance, if you have a federal student loan with an interest rate of 4.53%, that is quite a bit lower than credit card debt with an interest rate of 15%. You need not feel an …

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FAQs about Retiring, $40,000 in Credit Card Debt, No Savings, What Should I … Coupon?

Should you eliminate credit card debt before retirement?

Eliminating your credit card debt prior to retirement is your most important job. As Dvorkin puts it, “credit cards and retirement don’t mix. Or they do mix—like gasoline and an open flame.” Student loans might seem like a concern for people who are far from being in the trenches with retirement planning. ...

Should you carry credit card debt into retirement?

Howard Dvorkin, CPA and chairman of Debt.com, has a dire warning about carrying credit card debt into retirement. “Right now, [credit card] interest rates are hovering around 20%,” Dvorkin says. “That means you’re paying a dollar for every five you borrowed.” ...

Should you use retirement money to pay off credit card debt?

Still, there is one time when it probably is a good idea to use retirement money to pay off high-rate credit card debt: It's when you're still working, and can borrow money from an employer-sponsored retirement plan — and then repay the money to yourself without tax consequences. Let me explain why this could be a good idea and how to go about it. ...

How can I pay off $40,000 in credit card debt?

To pay off $40,000 in credit card debt within 36 months, you will need to pay $1,449 per month, assuming an APR of 18%. You would incur $12,154 in interest charges during that time, but you could avoid much of this extra cost and pay off your debt faster by using a 0% APR balance transfer credit card. ...

Should I pay off my debt before retirement?

Other types of debt, such as personal loans, credit cards, and auto loans, should be paid off before retirement because they tend to have higher interest rates and lack any potential tax benefits. These debts can eat into your savings and reduce your standard of living. ...

Can I build my retirement back up after paying off my credit card?

Once you’ve successfully paid off the card, instead of returning your retirement contribution to its previous levels, Renfro suggests seeing if you can afford to apply that extra $160 that was part of your debt payoff budget toward building your retirement back up. ...