Or Is It More Convenient To Collapse Your IRA's .
Q: Is it better to keep on paying down the debt as much as you cash flow allows or is it more convenient to collapse your IRA's (or RRSP's) to pay off most of the debt, take the tax hit, and then resume contributing once you are debt free?
A: The first thing to do is to change your lifestyle so that you do not accumulate consumer debt. Your income is adequate to pay off the debt but only if you change your lifestyle. You seem to be looking for a simple solution of juggling money to make the debt disappear. I don't think that you have faced reality. I'm sure that you are glad to hear this. You're best bet would probably be to knuckle down and really concentrate on paying off the debt with out touching the tax sheltered account. Especially if it is a ROTH IR
A: Line up all the installment debt (excluding mortgage) in order of interest rate with the highest rate on top of the list. Pay the minimum required on all accounts EXCEPT the one on top. Pay the minimum PLUS all the extra your budget can afford on it. When the top one is paid off repeat the process. Naturally, you must stop making new charges on all the accounts or your just spinning your wheels.