Should I use an early IRA distribution to pay off my credit card balance?

Does it make sense to withdraw approximately $10,000 from my IRA and suffer the 10% tax hit on the amount in order to pay off $10,000 of credit card debt that's subject to 16% APR?

Debt, IRAs
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3 weeks ago

If you have good credit there are some credit card companies that offer 0% interest for 6 or 12 months for transferred credit card balances. That would be ideal in this circumstance. Also if this is a traditional IRA, you will also incur a tax bill for the $10,000. So you may need to crunch those numbers before making your decision. 

Also it is hard to answer your question confidently without knowing how much you have in your IRA and your complete financial situation. 

Read more: How to Avoid the 10% IRA Early Withdrawal Penalty | Investopedia https://www.investopedia.com/advisor-network/articles/how-avoid-10-ira-early-withdrawal-penalty/#ixzz52yg5eThN 
 

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