I need about $20k to get us through a layoff-home equity loan?
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Anonymous
Op here. My kids have special needs and losing their spots is simply not an option. I’m not able to interview or apply for jobs while caring for them, and there’s zero chance we’d secure childcare for them in January when I start working again if we don’t keep their spots now. Look, I’m not really looking for a comprehensive review of my entire life and finances and choices. The situation is what it is. My question is rather specific-what financial vehicles make the most sense for getting us $20-30k to survive between now and January? My DH mAkes $120k, we have a ton of home equity and good credit. No debt besides mortgage. I’m sure there has to be a way to do this. |
Anonymous
It’s way cheaper to hire a one-off babysitter or DH call in sick for an interview vs OP’s 5-figure high interest loan plan. |
Anonymous
| OP, don't listen to all these naysayers. Sometimes you have to take risks to get to the next level. DH and I have definitely stretched ourselves financially at different times over the years. I would do a HELOC just to take the pressure off. Then you can focus on a job. |
Anonymous
No vehicle makes sense at that dollar amount and in this interest rate environment. Sorry. You’re making a terrible mistake. |
Anonymous
I know my credit union (it's a small neighborhood one so no point in giving the name) is advertising personal loans of $10k at 0% interest but only for three months and it shoots up after that. It's being advertised to feds in case of shutdown, but isn't limited to feds. Don't know how your budget shakes out but you can pay for all food and household with a credit card and my gas, electric, cable/internet, car insurance can be paid with credit card. Make a list of your bills and look at their websites. I always pay with credit cards for the cashback where I can. I know someone who gets letters from chase where it's a zero percent interest cash advance as long as you pay within six months, but you have to pay some percentage up front. (So you borrow 10k, but you pay 5% or $500 as an upfront fee and then no interest if you pay back on time - but one late payment and you accrue all the interest). She's a realtor and her commissions come in at random times so she uses these as bridge loans and always pays them back before interest accrues. I am not sure if this is open to all, or if she gets these letters because she is a frequent customer. You really should consider getting a job though, even something like online tutoring where you set your own schedule. |
Anonymous
| I don’t think you’ll qualify for a HELOC (you need proof of income to pay it back and you said the one income can’t even cover your basic debts). If I were you I’d take a 401k loan (it’ll have to be the person who is still employed). We did that once when we needed some extra cash for a down payment. You pay yourself the interest. Good luck! |
Anonymous
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Borrow from 401k or credit card.
Surely you maxed out your 401k before paying off your 3.5% mortgage, right?? It's hard to get a bank loan without a job. How did you manage to massively, hugely overpay your mortgage for years, and never put any in savings? |
Anonymous
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We have family in somewhat similar situation.
1) why are you so sure you’ll have job by January? We know folks laid off for a year? If you have an offer can you get advance? 2) you need to pack up all your stuff and move out and RENT OUT YOUR HOME. get rid of as much as you can, store some, and then move where you can (1 bedroom apartments, univ housing, family, rent an trailer and camp). You need rental income to cover mortgage. January is 3 months away. 3) hardship withdrawal of 401k. You should qualify. |
Anonymous
| "When I start working again in January"--does this mean you have another job lined up already and guaranteed? |
Anonymous
| Anything you can sell on Facebook marketplace? Furniture, art, clothing, jewelry? |
Anonymous
Are you 100% sure. No offense OP but if you don't even know whether you have an IRA, I'm not confident you are fully aware of all of your retirement plans. I know that some state government pensions DO allow you to borrow from your pension. Look it up, call, e-mail them to double check this. |
Anonymous
Also if your husband is a professor he might have a 457b plan he can borrow from. |
Anonymous
| Doesn't know whether they have an IRA, 1.5m house but no savings, refuses to leave childcare even though parent is unemployed until at least January...this is why people shouldn't live beyond their means and should have some financial awareness. |
Anonymous
| If your DH is a professor can he tutor on the side? |
Anonymous
| Get a job. Any job. Simple. |