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I Can’t Afford My New House. – Tim

“Dear Steve,

My work loaded dropped off and I have 350.00 a week child support just bought a home about 4 mths ago barrowed from 401K for that and now due to lack of OT work can not make ends meet along with CC. and utilties I am behind in everything.

Not much left in the 401K fund but should I just do a harship withdraw which will only help catch me up and give me time to seek out other income

Tim”

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Tim,

I’m never in favor of raiding the 401(k). As long as that money remains in there it is protected from your creditors. If you take the money out you are robbing yourself of your future when you are old and can’t work.

We need to deal with the current situation, head on. If I understand you correctly, the only way the house was affordable, or your life affordable with your commitments was based on the overtime pay. Is that correct?

How much do you owe in credit cards? Besides the loss of OT pay, what has changed for you in the past four months?

Please update me on your progress by

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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