Trying to pay off debt? Here are 4 mistakes to avoid when doing that.
Paying off debt is one of the most worthwhile financial goals you can set for yourself. If you free yourself of obligations to your creditors, it comes with a whole host of benefits. You may be able to raise your credit score, you'll no longer waste money on interest, and you'll free up the cash you were devoting to your monthly payment. Unfortunately, it can take a lot of effort to achieve freedom from debt – especially if you owe a lot of money. As such, you can't afford errors that make the process even more challenging. In particular, here are four big mistakes you'll definitely want to steer clear of. 1. Tapping your retirement accounts Perhaps you're struggling with debt while your retirement account balances are growing. You may be tempted to just pull the money out of your 401(k) or IRA to pay back your creditors and kiss your debt goodbye for good. Unfortunately, this is almost always a really bad idea. First and foremost, if you're under 59...