Using the retirement funds is possible only if you are associated with your employer with some sort of retirement plan. In that case, you would have had a portion of your paycheck withheld on every payday which would have been deposited in your name into the retirement system. This retirement money can help you to get rid of your debts under special circumstances.
If you wish to borrow money from your retirement funds, then have a study on the terms of your company's retirement plan. Check out if your company's retirement policy allows you to withdraw your funds before retirement. Also check out if there are any penalties associated with it. Even if these conditions are not clearly mentioned in the company rules, check with the concerned department of your company.
Calculate the take-home amount you would receive when you withdraw the retirement money. And do not forget to consider the penalties and the taxes that would be associated with the retirement money. If the amount of your retirement money is more than your total debt, then you can withdraw your retirement funds. But if the amount is less than your consumer debt, then it is a good idea to wait for some more months.
Once you get the money on hand, make a plan on how to use the money to pay your debts. Write down the debts of each account, the interest rate, and your minimum payment for each month. It is a good idea to pay off the account with the highest interest rate first. You can also contact each company and check if they would lower your interest rate.
If you wish you can look for a new job which would give advancement in your career. There are plenty of retirement jobs available from which you can choose the appropriate one. With the new tax laws, you can borrow from your retirement savings even after you have left your job. The good part is that your retirement loan requires no credit check and carries a low interest rate too.
