(You can learn more about , which could lead to a lawsuit, the CFPB says.Not paying creditors will also show up as a negative transaction on your credit report that makes it harder to borrow more money.
Don’t use your IRA to pay debts unless you are 100% confident the money will be replaced within two months, say, with a tax refund.
Otherwise, you’ll be hit with a penalty and taxes on the funds.
A tip for Mom and Dad: If your kids ask you for a loan — for debt consolidation or any other purpose – even if you can easily afford the requested amount — take a good, hard look before you agree.
If you do go for it, keep it as professional as possible.
, into one single bill that’s paid off with a loan.