Help me make a financial decision ?

I have some financial decisions I theoretically need to make.

I have amassed approx 9000 in credit card debt all at zero percent except for 2400 of it. I have an ira that I can take 5000 to pay some off but am weary because I’ll have to pay capital gains etc. 

I also have tuition for college I need to pay for one is in collections for 800 but got settled at 685 due which I guess I have to put on a credit card....and one is in progress which will be due soon for 400 digit to mention 21000 of student loans which I will need to start paying next year. All of this with the intention that I will be admitted into a highly competitive program with finaid reinstated to make a decent living for myself, a living wage.

 I qualify for a personal loan but can only afford 84 months at 96mth for 5000. Which I thought may help with the remainder debt that I can’t pay off.

I bought a house 120000 @0% for 650mnth which will need repairs and am unable to have roommates.

My income is low roughly 24000 and am self employed manicurist. I’ve raised costs as much as I can and still can’t seem to make more. I’ve started looking for a second job but the hourly rate versus commute has made things look bleak

I could spend 7000 and in 14wks possibly get into a job for $17hr but the investment is high and I’m not sure how I can afford it.

Do you have any tips or suggestions on how to elevate my burden.

I feel pretty miserable it was my birthday in the 11th and my mom is on hospice out of state and needsme

3 Answers

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  • NA
    Lv 7
    4 weeks ago

    Cashing out an IRA is ordinary income not capital gains. If you are younger than 59.5 years of age and an exception does NOT apply, then there is a 10% penalty.

    However, using the IRA money to pay tuition *in the same year* is one of the exceptions. And you can even still take an education credit.

  • Eva
    Lv 7
    4 weeks ago

    Do not pull money out of your IRA. It is taxes at ordinary income rates, not capital gains rates and you will incur a 10% penalty besides. At a 24k income, you really can't afford your house AND all your other bills. Having to continually put things on your credit card and having so much total debt on it should tell you that. The last thing you need is to add another debt by taking a loan. I would like to know though how you got a 0% mortgage. I've never seen one.

  • 4 weeks ago

    Well, your mom being out of state...is that enough for you to move?  If so, most of what you say is irrelevant.  

    Anyway, pay off the collections account and try to keep all of your accounts current, thats the first step here.  

    You say the hourly rate vs the commute looks bleak...your whole situation is bleak (its not that bad...you'll get through this) so take the bleak options.  Can you not work anywhere closer to where you live, even at minimum wage?

    Dont spend that $7k on training...

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