Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A. Secure new job at a new employer, hopefully making similar salary, and, as a result, getting access to remaining 401k funds, so that 80% of all outstanding bills will be paid and I will get caught up.
B. Keep current job where I am bringing home net, only $2k (spouse will be bringing in same amount per month), and try to slowly pay off everything, which, could take 3-4 years, assuming credit card companies and repo car company does not sue me.
C. Apply for new job at current employer. Unfortunately, new job will only yield maybe an extra $100.00 per month.
*Current job is taking physical toll (not stressful, but) due to excessive driving (3 hours total per day).
A. Secure new job at a new employer, hopefully making similar salary, and, as a result, getting access to remaining 401k funds, so that 80% of all outstanding bills will be paid and I will get caught up.
B. Keep current job where I am bringing home net, only $2k (spouse will be bringing in same amount per month), and try to slowly pay off everything, which, could take 3-4 years, assuming credit card companies and repo car company does not sue me.
C. Apply for new job at current employer. Unfortunately, new job will only yield maybe an extra $100.00 per month.
*Current job is taking physical toll (not stressful, but) due to excessive driving (3 hours total per day).
Thanks.
Shaggy.
Taking money from a 401k only treats the symptoms of the debt, it does not address the root cause. You should try to prevent whatever happened from happening again, first and foremost. In other words, stop borrowing money!
Second, is this "excessive driving" involving a company vehicle or a personal one? Putting too many miles on a personal vehicle without the means to replace it is asking for disaster.
Third, what about trying to get a job that doesn't eat you alive, so hopefully you'll have the energy to also work a second job?
You should consider other options for paying off your debt first before you raid your retirement. Given the aging population, it is highly unlikely you will get generous SS benefits. Pulling $ from your 401(k) should be a last resort.
My advice also says DON'T take out your 401k, penalties will reduce what you actually have to work with, and such and you will only take care of 80% of your debt? NOT WORTH IT. PLUS you will lose retirement money, that can never really be paid back.
Opt for the jobs, even at $100/month extra is a good start. That $100 is $1200 a year or $6k in 6 years.
If you need to, take a new job at current employer and look for a second easy job. Even if you only sacrificed two 4 hour shifts nights a week and worked the two 4 hour shifts weekend days @ about minimum wage somewhere slinging burgers or pizza [$8/hr}, you'd have an extra $128 before taxes, or about $100/week, that's an extra $5,200 for the year, and coupled with your extra $100/month at your new job at the company, gives you a total of $6,400 in a year.
EVen if it still takes you 5 years to pay off stuff, that's an extra $32K to work with without much sweat really.
That's what I'd do.
Butt it is just me,and you might have different luck. Best of it to you.'
Short-term:
Budget, cut up credit cards, stop spending money on things you don't need to live (Food, Shelter, Utilities) Get a 2nd job, pizza delivery, house cleaning, etc.., when that doesn't work your sig. other needs a second job.
Long -Term:
Figure out a career path that you can make more than the $24,000 a year and then work to achieve it.
You're driving 3 hours for a job that nets you $2K a month? That's your daily commute time? You can make $2K a month anywhere, you should not be making a commute for that income. I worked a Pizza Hut about 8 years ago and made $2K a month being a delivery driver working 30 hours a week. I worked another 15 hours for a lawn mowing business making another $500 a month.
There's only one: CUT.
Cut the heart out of every expense.
You can start tomorrow.
Wanna know a secret?
Once expenses are under control... you'll be worth more at the job.
Which is when you go for an increase in wages.
Next secret?
BANK EVERY PENNY of the increase.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
