Recently lost my job. Severance will float me for about 4 months. $70,000 in debt: $20,000 to family, $27,000 CC, $6500 student loan for my son, $14,500 car.
Retirement fund will need to be rolled over into an IRA (currently in a 403b). I owe myself $11,000 from that fund.
Question: Do I use funds from the retirement fund to pay off the debt (plus the tax and penalty for early withdrawal) become debt free, and spend the next 10 to 12 years (I’m 56) paying back into the IRA I established when I rolled the fund over.
Don’t use retirement fund (unless you have much much more than you need). However, those penalties are not even worth it. Just try and find another job and work on paying off all that debt. Try and pay it all off as quick as possible.
I also agree not to use the retirement fund, unless you’re absolutely down to your last dollar. I hope things work out for you. Focus on keeping your skills current, networking, and looking for a job. Once you’ve found a job you can focus on paying your debt down.
Lost my job in June with less than 2 months worth of severance. $51,000 in credit card debt; $165,000 in student loans; $6,200 owed to friends/family. I owe myself almost $4,000 from my retirement fund.
Are you eligible for unemployment? Can you take on side gigs?
