Our office remains open for new and current clients, and to help prevent the spread of COVID-19 we have expanded our options for remote consultations and client meetings. Please contact our office to set up your free consultation.

Hyde Park, Eastgate, Fairfield, Covington: +1-513-723-1600
Portsmouth: +1-740-300-2022
Call For A No-Pressure, Free Consultation

Hyde Park, Eastgate, Fairfield,
Covington:
+1-513-723-1600
Portsmouth:
+1-740-300-2022
Call For A No-Pressure, Free Consultation

Full Service Bankruptcy
And Debt-Relief Lawyers

Seeking advice before using retirement funds to pay down debt

| Sep 14, 2019 | Bankruptcy

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.

Archives