“Dear Steve,
I lost my job a month ago. I have a new job to go to but half of what I was making. Without reducing or eliminating my credit card bills, I will lose the house because I barely have enough money for groceries and gas to get to work after paying bills. A couple of credit card companies put my account on hold but only until I return to work (start date 9/13) another worked out a 6 month reduced payment plan. I have between $20 and $25,000 in 403b accounts but if I take that, which I am willing to do, I’ll lose 30% in taxes and penalty fees. My credit card balace is somewhere around $31,000. I don’t’ know who to trust or what route to take.
What is the best way to go, I can no longer pay my credit card bills without risking loss of our home. Counseling and cosolidation or debt reduction? Someting entirely different? Is there anyone you recommend?
It is always a good idea to consider bankruptcy as an option to reduce your debt if it is not manageable. Bankruptcy gives you legal protections that no other debt relief option offers. You can click here to find a local bankruptcy attorney.
If you want to talk to a debt coach then I suggest you contact
Please don’t take anymore money out. It does not make sense to convert money protected from creditors in the 403b to temporarily fund a path that won’t get you out of debt.
If you filed bankruptcy all of the 403b money would have been able to be saved for when you need it most, when you are no longer working.
Just because a decision is hard, does not mean it’s wrong.
Keep me posted.
Steve
Thanks Steve. I will probably contact Damon and see what he recommends. Bankruptcy will be my last resort. I decided to take money from one of my 403b’s to pay the taxes and keep things afloat while I do my research. We discovered that I do that because I no longer work there and was 55+ when I separated from them so hopefully we’ll skip the 10% penalty. I appreciate that you answered my question so quickly and gave me more than one option to consider.
Thanks Steve. I will probably contact Damon and see what he recommends. Bankruptcy will be my last resort. I decided to take money from one of my 403b’s to pay the taxes and keep things afloat while I do my research. We discovered that I do that because I no longer work there and was 55+ when I separated from them so hopefully we’ll skip the 10% penalty. I appreciate that you answered my question so quickly and gave me more than one option to consider.
Please don’t take anymore money out. It does not make sense to convert money protected from creditors in the 403b to temporarily fund a path that won’t get you out of debt.
If you filed bankruptcy all of the 403b money would have been able to be saved for when you need it most, when you are no longer working.
Just because a decision is hard, does not mean it’s wrong.
Keep me posted.
Steve