Should I use some invested money to pay off credit card debt.

[brokeagain]

I have 2300 in credit card debt which I find hard to bring down. The interest is crippling at 22%. I have 25k in a prismatic 5 account with Zurich which I invest 400 per month into. Its a fund for kids college fees in 10 years time.
Should I clear cc debt by doing a partial withdrawal from fund?

 

[Slim]

If you divert the €400 per month to the credit card you will clear the debt in about 6 months, avoiding any tax issues with the withdrawal from Zurich.

 

[brokeagain]

Thank you. Sounds like good advice.

 

[time to plan]

Are you able to pay off the credit card in full on pay day and then use it for 2.2k spending (supermarket etc etc.) during the month each month, so you're not paying interest while you're paying off 400 per month?

 

[brokeagain]

I plan to close of cc account once paid as I have been building an emergency fund for the last few months. I don't want to use emergency fund to pay cc as then I have to use cc again when something comes up.

 

[TRS30]

Transfer to a 0% interest CC and then divert monthly investment amount.

 

[time to plan]

Pay off the credit card with the emergency fund.

Build up the 2.2k by stopping the 400 per month you would have invested in the fund, amd rhen close the credit card account if that's what you want to do.

If an emergency arises in the meantime you can use the credit card.

 

[Connard]

Pay off the credit card with the emergency fund.

Build up the 2.2k by stopping the 400 per month you would have invested in the fund, amd rhen close the credit card account if that's what you want to do.

If an emergency arises in the meantime you can use the credit card.

This. If you didn't have an emergency fund you wouldn't borrow a few grand at 22% to start one which is essentially what you are doing here.

 

[time to plan]

This. If you didn't have an emergency fund you wouldn't borrow a few grand at 22% to start one which is essentially what you are doing here.

Agreed. And it is unecessary because you could you the cleared credit card in an emergency, or even withdraw from the Zurich fund and pay the tax on it.

 

[Connard]

Agreed. And it is unecessary because you could you the cleared credit card in an emergency, or even withdraw from the Zurich fund and pay the tax on it.

Plus if they put the 400 euro a month that is going into the Zurich fund into their emergency fund, 5 months from now the emergency fund is back to where it is now.