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Cassie is in Colorado Springs hi Cathy welcome of the Dave Ramsey show how are you tonight.
It's better than I deserve what's up.
Well I think the question my husband and I have been fighting diligently to get out of debt we worked ourselves down to one credit card.
But unfortunately being that I contemplated I didn't help plan properly and we now all of the -- of a greater amount that we -- so we were debating whether to pull money out of -- hasn't -- employee.
-- we originally intended to use that money to pay out the credit card.
But now you know that we have that fire that bill.
You know our heads we're wondering if maybe we shouldn't get paid out -- that.
Yeah the money -- None of the none of the American well I wouldn't -- had a 401K to pay debt.
And the reason -- -- going to be -- -- 10% penalty -- tax rate.
Which is going to equate to about 40% of the money's gonna go the government so you're asking me -- -- borrow money -- 40% interest.
The payoff that answers now.
Not unless you're avoiding foreclosure.
Or bankruptcy and you're not at that point how much RS -- do you have enough.
Dollars prepared and what do you make.
-- -- -- -- -- About a 120.
So why can't you fell 141000 -- a few months.
We can't I think it's just the burden that's happening over our heads -- It's a lot of shots.
Good level motivate you get it paid off very quickly how much credit card debt behalf.
Get out there and -- the -- 4000 out of a 140000 that's a six months to a year program right.
It's a matter of beans and rice tries some means being on a budget now are you pulling your quarterly estimates out -- -- among time now.
Yeah -- here we've got to stop what you're doing you're gonna make a huge mass here.
And so every check and the you have separate account for your business.
But you -- do not take money out of the business ever again starting right now to bring home.
Unless you set us -- a fourth that.
For your quarterly estimates so -- -- -- -- thousand -- -- 750 comes -- to -- goes -- savings a separate little savings account just for taxes.
And then -- so what's holding on yourself and you'll always have the money to pay your quarterly -- Because you're paying -- -- penalties to hear that you don't need to be paying a first person gets -- uncle.
Uncle Obama needs the money just ask him.
You don't want to KG BF you can go.
We don't you do you do not want the IRS breathing down your neck so let's get on beans and rice tries to means death snowballs out the window IRS -- first.
Then we clean up credit cards but you are -- the why -- your withholding on yourself.
Just gave -- 2.5 percent pay cut to.
-- know that was already cut now we're just saying it out loud.
While the only thing that scared me at that ballots from 2000 eagerly -- -- this year to get access to file.
Don't -- you you know it's easy to plan out though you can look at it and see where you are.
And if they're breathing down your neck you can put them on -- installment plan and -- from 300 dollars a month on installment plan they'll shut up and take 300 a month which you don't wanna pay it off that slope.
Got it but that that shut -- down -- come take stuff from -- then.
-- -- Didn't -- just apply for an installment loan -- are installment plan -- the IRS but there and so you've got to do three things when your taxes hear me loud and clear.
One is we got to take care of oh wait -- install a -- inkling that that up.
Who is you got to prep for 09.
Because -- -- going to be hearing about an eye blink.
Great and three as you got to start a whole withholding on yourself starting to date.
You've never take another dime out of your business.
Number one -- small business failure is cash flow problems associated with bad bookkeeping and not -- on yourself.
Number one thing cause a small businesses to fail you can be very successful and the RS -- shut you down.
I -- it out OK so those three things do those three things when your taxes if the tax thing under control a game plan.
Then attack the credit cards -- the 401K alone you're going to be fine.
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