Hi Money Minder,
I used to make a decent salary of $90k, but I had to quit because the new owner was a total jerk. After being with the company for 7 years, I just couldn’t take it anymore. Now, at 61, with my full-grown Q-Tip hair, I’m struggling to find a job in the same field. I tried starting a nonprofit, but it’s taking longer than expected to get fully funded. In the meantime, I’m working part-time at Home Depot to make ends meet.
Unfortunately, my savings are dwindling due to the nonprofit, and I have a $9k credit card debt at 16.46%. The bank rejected my request to transfer it to a lower personal loan because of my low salary. Can I dip into my $200k IRA to pay off the credit card? Or should I transfer it to a new 18-month No-Interest credit card and hope to pay it off once I find a full-time job? I’m running out of ideas here.
Your advice would be greatly appreciated. Thanks a bunch!
Seeking Help
Response from THE MONEY MINDER:
Hello There,
I am truly sorry to hear about the challenging situation you find yourself in. It sounds like you have been through a lot over the past few years, and it’s understandable that you are looking for a practical solution to your financial struggles.
Considering your current circumstances, taking money out of your IRA to pay off the credit card debt may not be the most advisable course of action. Withdrawing funds from your IRA could result in penalties and taxes, and it is essential to preserve your retirement savings as much as possible.
Instead, transferring the credit card balance to a new 18-month No-Interest credit card could be a viable option, given your hopeful timeline of landing a full-time job within that period. However, it is crucial to have a solid plan in place to ensure that the debt is paid off before the interest kicks in after the promotional period ends.
Additionally, continuing to work part-time at Home Depot to cover your monthly expenses while actively job hunting is a prudent approach. It may also be worth exploring other sources of income or opportunities to enhance your skills and qualifications to increase your chances of securing a full-time position.
As for your nonprofit, putting it on hold temporarily while you focus on stabilizing your financial situation seems like a reasonable decision. Once you are in a more secure position, you can revisit your plans for the nonprofit and work towards its sustainability.
In conclusion, it’s essential to prioritize your financial stability and well-being at this time. By making informed decisions and taking practical steps to manage your debt and secure stable employment, you can work towards building a more secure financial future. All the best from THE MONEY MINDER.
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