We have accumulated $12K in credit card debt and although we are able to break even each month, we are not able to pay down the debt.  I am considering withdrawing from my Roth IRA or taking out a loan to pay it off.  What is your best recomendation?  We are only 45 so there would be a penalty for a withdrawal from our Roth but I feel that we need to do something drastic before this gets completely out of hand.  I have a junior in high school that will be heading to college in 1 1/2 years to think about as well.


Without any extra income per month to pay down your bill you're going to have a difficult time in paying that $12k off.


A 401K loan may be a good option.  Cancel your cable TV and use that money to help pay it down perhaps? Try and figure out some ways to sell some things like vehicles, etc. to help raise some cash?


Breaking even will not get you anywhere as you've stated. 

Hi Warhawkmom,

Congratulations on taking charge of your financial situation!


I am not a financial expert, but luckily our financial experts over in the Ask USAA section have answered similar questions.


Here is what they have to say about using Roth IRA to elimiate credit card debt


Advice on debt consolidation loans


Best of luck!!

Consider other sources of equity first. Then see about cutting back expenses such as cable or phone bills. Loans are good but come with high APRs. Determine first if your credit cards have lower interest rates than available loans. Your goal is to get your DTI (debt to income) ratio lowered before you'll need to sign on any parent loans for your child.