I need to cash out my 401k

[Anonymous]

Anonymous wrote:You should be overpaying your CCs before you overpay your 3.3% car loan.

Can you move the $5k to another 0% card?

Do that if possible and cut up the first card so you no longer have access to it (but dont close it). Alternatively, call your CC company and ask them to lower you interest rate for 18 months. Threaten to move the balance and close the card (you must threaten to close - that's the tipping point that gets you to a person who can actually work with you - the first person you talk to will probably say no until you threaten to close the card). They may not permanently lower the rate, but they may move it to 3-5% for 12-18 months.

I will shop around for 0% deals. I called the CCs a few months ago and asked for a lower rate, they ran my credit and said that because of my credit they couldn't lower my rate ( my credit is 685). I did not threaten to close the account though

[Anonymous]

Anonymous wrote:

Anonymous wrote:don't give up. I worked thru my credit card which was similar to yours and expenses-before I made cuts-similar to yours as a single mother with 2 kids (3years and a baby). I wanted to make sure I never got into the situation again so I worked thru my debt without pulling out my 401K or getting into more credit card debt.
It started out slow but then it started getting easier when I lived on less and stuck to my wants and not my needs/desires.

You can do it, don't give up..work thru it on your income and not a quick fix.

How did you do it? Sometimes I just feel like giving up, I feel like I'm working for nothing. Went to school, got my masters and still living paycheck to paycheck

Searched for ways to cut back and put them into practice. Only brought my kids clothes-when they needed something-from 2nd hand stores..not the consignment shop, thirft store. Cut back on my food bill. Only did free stuff, with my kids. Prayed.

This is also when I started listening to Dave Ramsey.

I know the feeling. But, don't give up. Work thru it.

[Anonymous]

OP, paying extra on the auto loan makes no sense with such a low interest rate. You should be putting extra cash towards the CC debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP, what's your take-home pay each month? What does the $400 in credit card expenses go to? (Is that where you're accounting for clothes, health care, entertainment, toys?)

Your utilities seem high to me for a 2-bedroom apartment. Could you change the thermostat temperature to lower those bills? For food, search DCUM for tips on lowering your bills, you'll find some good ideas.

The thermostat is set at 72 degrees. I pay for electricity and gas and yes it is high. The $400 in credit card expenses is what I pay monthly to decrease the $7k balance ( not extra spending)

Don't try and pay both down at the same time. Pay the min on the highest limit credit card and put the extra on the lowest balance one. when the lowest balance is paid off you will get an emotional boost that will help you to get more intense and a sense of pride. when that one is paid off..start paying that money to the other credit card along with the min that you were paying.

I know some say it make financial sense to pay the highest interest..but right now you need emotional boost to keep you moving forward. Having one paid off made me feel so proud. It is not always financial it is also emotional-to help change the way you do things.

[Anonymous]

Anonymous wrote:OP, paying extra on the auto loan makes no sense with such a low interest rate. You should be putting extra cash towards the CC debt.

This! I didn't notice this earlier.

[Anonymous]

Op, my heart goes out to you. That's a tough spot. Can I ask what you do (broadly)? Perhaps the best option is to job hunt, even a modest $5,000 raise would (it sounds like) that a lot of pressure out of the system, and some companies in tysons offer a lot of other benefits (free parking, some have great 401ks, a bunch have discounted daycare, some offer work cell phones to all employees, etc).

[Anonymous]

Get some rest and know that you will work thru it. That debt will be gone before you know it. Keep chipping at it and stay encouraged.

[Anonymous]

These are the times I wish the forum was not anonymous. There are many of us that want to support you as you work thru this.

[Anonymous]

Anonymous wrote:These are the times I wish the forum was not anonymous. There are many of us that want to support you as you work thru this.

Yep, I would send you $100o if I could.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You should be overpaying your CCs before you overpay your 3.3% car loan.

Can you move the $5k to another 0% card?

Do that if possible and cut up the first card so you no longer have access to it (but dont close it). Alternatively, call your CC company and ask them to lower you interest rate for 18 months. Threaten to move the balance and close the card (you must threaten to close - that's the tipping point that gets you to a person who can actually work with you - the first person you talk to will probably say no until you threaten to close the card). They may not permanently lower the rate, but they may move it to 3-5% for 12-18 months.

I will shop around for 0% deals. I called the CCs a few months ago and asked for a lower rate, they ran my credit and said that because of my credit they couldn't lower my rate ( my credit is 685). I did not threaten to close the account though

FYI, when you transfer credit to another card it will charge you a 3% fee so it's not really the 0% low rate.

[Anonymous]

OP back. I work in Finance ( I know, ironic), unfortunately finance salaries are not that high for what I am doing. My income might rise substantially in the next 5 years but because I switched fields recently I started at the bottom, I just started this job so I can't switch jobs for now. I just need to stay put and get as much experience as i can in my field.

[Anonymous]

Anonymous wrote:

Anonymous wrote:These are the times I wish the forum was not anonymous. There are many of us that want to support you as you work thru this.

Yep, I would send you $100o if I could.

I appreciate the thought. Thank you guys!

[Anonymous]

Anonymous wrote:

Anonymous wrote:The thermostat is set at 72 degrees. I pay for electricity and gas and yes it is high. The $400 in credit card expenses is what I pay monthly to decrease the $7k balance ( not extra spending)

I agree, you could lower the temp 4 degrees at least. OP could you cut enough costs to increase your cc pay-down to $600/mo? If you did, how much would you save on interest? When K starts, how much more will you be able to increase your payment? Have you crunched these numbers?

[Anonymous]

I feel like I won the lottery. I just put everything on my excel spreadsheet and realized that months ago I set up an automatic payment from my bank to take out $100 every week and transfer it to my online savings bank account. I just checked the account and saw that i have $1500 there So I can use this $1500 to pay off something right away, yeYyy !!!!! This is such an amazing feeling!

PP, When K starts, I think I will be able to save an extra $600

[Anonymous]

Your utils are super high! Why??

72 is too high. Turn down to 65 for heat and up to 77 for ac.