Should I cash out my mutual fund and pay off my high interest credit card bill?

It%26#039;s not a huge amount. Only $5000, but I would like to get out of my credit card debt.

Should I cash out my mutual fund and pay off my high interest credit card bill?

You will be way ahead of the game to do that, but it will be a fruitless exercise if you then turn around and rack up more debt on your credit card again.

There are very fee mutual funds that can match the return of paying off your credit card debt.

Should I cash out my mutual fund and pay off my high interest credit card bill?

If you are paying more in interest then the fund is paying then yes.

Should I cash out my mutual fund and pay off my high interest credit card bill?

If it%26#039;s a mutual fund in a 401k, then no. There%26#039;s a 20% penalty.

If it%26#039;s just a mutual fund, then it will be regular income added at the end of the year. Once you pay off the debt, will you not get in debt again?

Maybe another solution would be to transfer to a credit card 0% interest for a year. Cut up all your cards except one... and pay it off.

Should I cash out my mutual fund and pay off my high interest credit card bill?

yes you should. Unless you think that mutual fund can double in a year or so. Most mutal fund generates lousy returns those days (%26lt; 5%) and you pay 21% on your credit card.

Should I cash out my mutual fund and pay off my high interest credit card bill?

The assumed growth rate for mutual funds is 6% net, or 7% net if it is a tax free scheme. Therefore if the interest on the card loan is more than that, it would pay you to sell the mutual fund.

But have you tried to transfer your loan to a zero interest card? The are such cards, in UK, at least.

Should I cash out my mutual fund and pay off my high interest credit card bill?

If your interest for the credit card is more than the growth in the mutual fund then you should pay off your credit card.

Should I cash out my mutual fund and pay off my high interest credit card bill?

Absolutely.

Do it now!

Good luck

Marc

Should I cash out my mutual fund and pay off my high interest credit card bill?

Paying off your bills is the most important. The interest you pay on that card is more than what you would make or earn on that fund.

You can also look at other alternatives to paying that card off. I am not to big on credit cards person , but some credit cards will allow for you to move your balances to there card just for get your to business. You can maybe cash part of your fund and pay off the rest temporary with this card