Should I take money out of a mutual fund to pay off part of my debt?

I've got about $1,500 in a growth mutual fund that I haven't touch since my aunt and uncle started it for me. Right now, I have a car loan and some credit card debt that I really want to pay off. The car loan is $3,000 at an interest rate of over 17%. I pay off as much as I can but after 4 months of having the loan I still owe over $2,900 because of the interest. So I figured I'd pay off about $1,000 on my car loan and then pay off about $500 on the credit card because the interest on the card is about 12% with I think $1,000 on it. Should I pay off my debt so I don't get screwed by interest, or leave my mutual fund alone and let it build slowly.

** $1,500 is what the mutual fund was 3 years ago, so it should be a little more now.

At these interest rates, you should pay the debt off and then focus like a laser on rebuilding your savings/investments.

Why not?

Look at the rate of return on your mutual fund. If it is larger that what you are paying to service your debt (17%, 12%), then you should keep it as is, since it will accumulate cash faster than your debt builds up.

If it isn't, then you should dump the mutual fund and pay off the debt.

yes, if don' have any other options.
your money is growing in the mutual funds
but your debts are increasing higher than the interest
you can get out of mutual fund

Yes, but you should pay it all on the car as the intrest is very high. Then see if you can use your credit card to pay of the rest of the car, then get a new credit card with 4 -5% intrest for 6 months and transfer it all onto that card. then most important of all cut both credit cards and only pay cash.

Get the old car fixed You don't need a new car yet.

yes, but all of it should go to the higher rate debt (car).

Chances are the mutual fund hasn't returned 17% so you'd be better off paying down the high interest debt.

Under your circumstance,I suggest here for you to have a visit.http://carloan.featured-resources.info/c...

Dear Toby,
Happy New Year!!!
Honey I made this mistake of pulling funds out of my mutual funds 5 years ago thinking I will slowly replace it back. I paid of my debits alright, but today I have nothing. I feel that you should not touch your savings unless it is a matter of life and death. Someday that mutual fund will really come in hand when all other avenues are closed to you. Don't make the mistake I made. This is strictly my opinion and you are by no means forced to accept it. You are your best judge. That mutual fund in my eyes is your safety nest. Take Care, and enjoy your new years eve.
Your friend
Simbha