Breaking Down the Pros and Cons of Cashing In Your CD to Cover Credit Card Expenses
The Case for Cashing in your CD
If you're facing a high-interest credit card bill, early withdrawal from a CD may be a better financial choice to avoid long-term debt. CD penalties, while significant, are typically lower than accumulating credit card interest over time.
The Case against Cashing in your CDs
When you cash in your CD early, you not only lose the penalty amount but also the potential future earnings from your investment. Consider alternative strategies, such as applying for a credit card with a 0% promotional APR, to manage debt without sacrificing long-term financial growth.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.