I have my financial life in order now and I’m spending much less than I bring in each month.
I am considering using one of the 401(k)s to pay off debt.
Second, that amount of credit card debt is a serious weight.
She’s pretty clearly committed to paying it off the right way without damaging her credit any more than it already has been, which means that she’s going to have a long road ahead to get it all paid off.
Your two main choices are a SEP-IRA or a Solo 401K. Simplified Employee Pension Individual Retirement Arrangements, or SEP-IRAs allow a sole proprietor to shelter 20% (actually 18.6%, at least until you max out your payroll tax) of your business profit up to ,000 per year (,000 if over 50).
You can easily change these inputs to see what the impact will be.
The has been updated to use the new withholding schedules for 2012.
I’m paying this debt down, but it’s at a snail’s pace – I have played some balance transfer games, but I still keep getting hit with finance charges.
Even if I never charge another cent, I calculate that I won’t be able to pay off this tremendous debt until 2011.