Newbie here guys, so take it easy *closes eyes and dutifully prepares for facepunch*
After falling for the idea that a private education will pay itself off in future earnings (false...), I found myself months without a steady job after graduating with a MA. Temping, waitressing, babysitting, housecleaning-- all these things were barely enough to cover utilities, and that was WITH mooching off of kind friends. So excuses excuses excuses aside, I find myself in some CC debt. Yes yes, I know. BUT the good news! I got a job! With $42,000 yearly income, I've committed to putting half of my bi-weekly paychecks towards the debt (and for the past month I've actually been getting paid, have in fact). SO:
-$5,573 debt on one card remaining
-11.99% interest rate (which just kicked in in January)
-YTD interest: $159.05
-Estimated time to pay if off... July? But my student loan repayment will kick in in May, so that may slow it down.
-A Roth IRA account my parents opened for me years ago, that I just now gained access to/the info for (woo taking control of finances!)
-5% contribution to my 401K-- my employer's match
To the question: I know I can take the contributions (not the earnings!) out of my Roth IRA without any penalty. I know I can't put that money back. Getting out of debt is my TOP priority-- I'm working in a field I have no interest in because it pays better than my (academic) field of choice, I plan on climbing in this field for 2-3 years high and fast, and I want my $45,000 or so of student debt ($15,000 of which is no interest family loan) GONE in 2 years, 3 MAX. Hair. On. Fire.
Can I take the money out of my RothIRA to pay off my credit card and start in on my student loans?
Is this an idiotic move?
Will I regret it? Will I get better returns on investing in index funds when I'm out of debt anyway, despite losing those years of compound interest on the money I take out?
Behaviorally I'm not worried about this move; every time I've swiped my credit card the past several months I get nauseous. I've been on a journey to minimalism and love it and will never go back. The student debt is quite enough motivation for continuing my debt-repaying behavior, and to wipe the disgustingly high interest stupid tax out would be SUCH a load off my shoulders.
Help me, wise ones!