Minnillo & Jenkins, CO. LPA
Call 513-723-1600
For A No-Pressure, Free Consultation

Seeking advice before using retirement funds to pay down debt

There could be a multitude of ways in which financial challenges could disrupt various areas of a person's life. Individuals in Ohio who encounter similar hardships may feel that finding ways to free themselves from the clutches of debt is vital and they may use a variety of strategies to help achieve this goal. Studies indicate that many individuals have decided to use retirement savings to fend off debt, and while the relief provided through this method may seem advantageous, it might not always be the healthiest financial decision.

In a recent survey of Americans between the ages of 18 and 34, studies indicate that one out of four individuals admitted to taking an early withdrawal from retirement funds to pay down debt. Nearly 33% of these individuals say they used this method to address existing issues with credit card debt. With the average credit card debt for those under the age of 35 coming in at just under $6,000, there could be many individuals who are considering a similar move.

While there may be advantages to cutting down on debt early in life, using retirement savings might not always be the best path. Experts indicate that there could be consequences to a similar decision, such as income taxes and early withdrawal fees. Experts also suggest that there could be long-term ramifications to taking early withdrawals and understanding the risks before making such a decision could prove imperative.

With a variety of available outlets to consider, those who continue to struggle under the weight of debt could benefit from seeking guidance on how best to handle the situation. By consulting with a bankruptcy attorney early in the process, a person in Ohio could obtain much-needed advice on all the available options for relief. An attorney can examine the situation and assist a client in forming a plan to reduce or eliminate his or her debts through the proper outlets.

No Comments

Leave a comment
Comment Information
Email Us For A Response

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Contact us right now for a free bankruptcy consultation

NACBA - National Association of Consumer Bankruptcy Attorneys

Proud Member NACBA

We are proud members of the NACBA, a national organization dedicated to serving the rights of consumer debtors. Read More

Super Lawyers

Jenkins Named Super Lawyer!

Founding partner, Christian A. Jenkins, was selected by his peers and the media as a Super Lawyer. Read More

Cincinnati Office
2712 Observatory Avenue
Cincinnati, OH 45208

Phone: 513-723-1600
Cincinnati Law Office Map

Cincinnati Office
792 Eastgate South Dr
Suite 150
Cincinnati, OH 45245

Phone: 513-685-0612
Cincinnati Law Office Map

Fairfield Office
447 Nilles Rd
Suite 9
Fairfield, OH 45014

Phone: 513-795-0995
Fairfield Law Office Map

Covington Office
526 Philadelphia St.
Covington, KY 41011

Phone: 513-795-0995
Map & Directions