If you have debt but have retirement accounts is it better to pay off the debt with the money in the retirement accounts?

Answer:

Yes. Paying off debts is always in your best interests.

Answer


Not necessarily. Unless the debt is substantial, it's far better to pay off the debt with money outside of a retirement account. Otherwise you are sacrificing your retirement and years of compound interest that can't be replaced. Your retirement accounts aren't a piggybank--if you aren't of retirement age, they should only be tapped in the case of an emergency, and just having a debt isn't an emergency.

First answer by Sheepgrape. Last edit by Sheepgrape. Contributor trust: 369 [recommend contributor recommended]. Question popularity: 54 [recommend question].