My debt to income ratio is at an all-time high right now since I’m having trouble paying my payments. I’m currently broke, but I’m also making the most money I’ve ever made. I owe roughly $15,000 total between my credit card debt and my auto payment. I want to know if taking money out of my rolled over Roth IRA from my former job is worth it in order to pay down some of my debt. I can’t keep up with my high interest credit cards and loans. I realise I made a mistake, but I would really appreciate any financial guidance.
I am so grateful to all of you 
prayfame.
Honestly, we’d need more details to give a solid recommendation, like your monthly income, expenses, and the status of each debt (whether it’s in good standing, collections, or charged off). In general, $15k isn’t an impossible amount of debt to manage, but it’s tough to say without more info. If you’re not comfortable sharing that, one option is to contact your credit card companies and ask about financial hardship programs. These typically involve closing the account in exchange for a fixed monthly payment, often with little or no interest, which can help ease the burden of large monthly bills.
Have you contacted your credit card issuers to request a reduction in interest rates? You will have to close the account when they probably reduce it to between two and four percent per month.
Not an expert in finances, but someone who has undoubtedly been in your shoes. You ought to take money out of your Roth IRA if you are able to. You will gain from debt repayment in the long run. Furthermore, you can always increase your retirement contributions when circumstances improve again. Retirement cannot be planned for until you have a strategy to get there.
fifteen thousand? Is that all?
Post your financial information, dude. Every single one of them. Nobody and I mean NOBODY can help you without a detailed financial snapshot.
List all of your expenses in detail. It appears that you are living beyond your means.
Rent and housing costs should make up no more than 25% of your monthly income.
Sell your fancy car and get a more dependable, reasonably priced one.
It is difficult to assist someone without knowing where you spend your money.
What amount would you be taking out? In certain states, you will owe 22% of it in taxes if you file as a single person. Can you get a car refinance? Through NFCC, I was able to locate a non-profit debt management organisation to assist me with my somewhat larger credit card debt. Perhaps look at that before making a withdrawal?
Using a debt management company is terrible because they take control of your finances, making it harder for you to get out of debt and taking an eternity. Avoid doing it. - avoid taking money out of your long-term savings or Roth IRA because doing so would be stealing from your future for the present. - early withdrawal fees and fines can be very high. - the Dave Ramsey program is effective. I’m not sure how many times I’ve celebrated Ramadan; it’s not enjoyable. Though it’s difficult and downright awful, you can see the light at the end of the tunnel it’s not a train and you might be debt-free by the end of the year.