Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Survival Mode

Veronica is seriously thinking about cashing out an annuity to pay off debt since her husband lost his job. Is that right to do?

QUESTION: Veronica and her husband lost their jobs in November and are in survival mode. They cashed in her husband’s annuity and wonder if they should pay off debt or exist on the money. Dave tells what they should do, and how they should handle their debts.

ANSWER: Sit on it. Keep the umbrella out while it’s raining. You might choose to not pay debt at all and just pay the house and utilities until you are re-employed. If you try to settle debt, get the offer in writing and keep it for the rest of your life.