I need to pay off my credit card debt. I am considering either a consolidation loan or withdrawing from an IRA and taking the tax hit and penalty. Do the saved interest payments outweigh the tax hit?
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You can do the math to compute your credit card interest and use various online calculators to assist you. We have some on BQ that may help.
You can then do the math to see what penalty you may have on your IRA. Different IRA programs can have different penalties. In most cases, the penalty, especially to the IRS, outweighs the benefit of credit card interest. That is, it generally isn't the most economical decision.
Check out a consolidation loan first. They are not easy to get, but they can work. Most importantly, stop using the credit card, increase your payment and work yourself out slowly if necessary.
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You can do the math to compute your credit card interest and use various online calculators to assist you. We have some on BQ that may help.