Welcome to the first installment of “Dollars and Cents“. This is a new segment where I’ll be answering reader questions using video with a bit of humor.
It’s part of my life mission of making personal finance fun. 🙂
If you have a question that you want answered, be sure to use our contact form here.
Here’s the first reader question:
So I am currently in college and working full-time. I took the easy loan to get and applied for a student loan to cover the cost of tuition, however, I had about $1300 in expenses that were not covered by that and had only a few days to come up with the funds. I put the charges on my credit card.
I have a 401K from my previous employer that I was planning to rollover into a Roth Ira. However, I am wondering if it would be better to cash out the 401K to pay down the credit card and then put the remaining balance in the IRA. I know that the fees/taxes are probably ridiculous. I just don’t know if it is better to do that or to leave the balance on the credit card and pay it down over several months.
- How to Pay Off Your Credit Cards Fast – We’ve got a great online spreadsheet you can use to pay down your credit card quickly.
- Lending Club and Prosper – If you have a significant amount of credit card debt consider getting a peer-to-peer loan to pay off the balance at a lower rate than your credit cards.
- Credit Karma and Credit Sesame – These online credit monitoring tools are free to use. We’ve done reviews of Credit Karma and Credit Sesame.
Get the Money Dominating Toolkit
- 6 Tools to Get Your Money Back on Track
- The Ultimate Goal Achiever Workbook
- 2 Free Chapters to my Best Selling Book
- 21 Days to Destroy Your Bad Habits Worksheet