When raiding your retirement to pay off debt might be a good idea

Core Insights - The rising credit card debt among baby boomers and Generation X is a significant financial concern, with average balances reaching $9,600 for Gen X and $6,795 for baby boomers [2] - Financial experts suggest that tapping into retirement accounts to pay down high-interest credit card debt can be a viable option, especially for those nearing or in retirement [3][4] Group 1: Credit Card Debt Situation - Credit card balances have increased significantly in 2025, creating a financial burden for many Americans [2] - The oldest Gen X-ers are now reaching retirement age, raising concerns about managing high-interest debt without a steady income [2][3] Group 2: Retirement Account Considerations - Financial advisors typically advise against withdrawing from retirement accounts, but in cases of crippling debt, it may be a necessary option [3][4] - Experts highlight that using retirement savings to pay off one-time emergency debt can be beneficial [7] Group 3: Alternative Strategies - Financial planners recommend considering alternatives to enhance income during retirement, such as delaying retirement, working part-time, or reducing discretionary spending [8]