Use Mutual Funds to Pay Off Debt?
If Susan's mutual funds are not in a retirement account, she should definitely cash some out and pay off her debts.
QUESTION: Susan asks if she and her husband should cash out mutual funds to pay off their debt.
ANSWER: Look at it this way: if you have consumer or house debt, you’ve borrowed money in order to invest. That doesn’t make any sense. If the mutual funds are not in a retirement account, cash some out and pay off your debts. Then get on a budget and stop over-spending. You have to change your habits if you’re going to get on a wealth-building course. When you have changed your habits and don’t have any payments, you’ll be able to invest and build wealth effectively.