Originally Posted by gribe
I'm 35 years old. I want to pay off my credit card which has a balance of about $3,900. Interest rate is a ridiculous 22.9%. I would like to withdraw from my 457 to pay off this debt. Is that a good idea?
Well at least you won't have to pay a penalty to take your money out of the 457 plan.
But you'll pay (state and federal) income taxes on what you withdraw
Also, You will forego any growth that the 457 plan might have.
The question I would ask is....
Why would you get in a situation where you have credit card debt ? And 22% interest credit card debt at that !