Reply to I need about $20k to get us through a layoff-home equity loan?

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[quote=Anonymous][quote=Anonymous]Isn't the clear answer a hardship withdraw from OP's 401k?

I know OP will have to deal with the taxes/penalty, but she needs money and she needs it now. She could be in significant, additional debt by the time a HELOC comes through and credit cards have a way of haunting you for years. A 401k loan would be much preferable to a withdraw but think OP already said not an option. And at least with a withdraw, she won't have to find a way to pay it back while digging out of her other debts.

I'm sorry for what you're going through, OP. It doesn't feel great, I know.

We hit some hard times ourselves that took awhile to recover from. We were in our mid-30s with student loans and pre-k tuition (no public option) for two kiddos. My husband's firm split unexpectedly, which disrupted our income significantly for several months, literally weeks after we had just closed on a house. I felt like an idiot because we had extended ourselves, though within reason/making reasonable risks, and it just...all blew up at once. I remember when the couch I had ordered arrived (I had picked out a performance fabric that was non-returnable) before things fell apart--I threw up.

We had to take out a 401k loan and also withdraw a portion of contributions from our Roth IRA. We were able to avoid any hardship withdraws but that would have been next up. Just is what it is.

Unless OP is in her late 50s, there is time to make up the withdraw over the next twenty years. [/quote]

This is dumb. Sell your house OP. This isn’t 2008 and you risk foreclosure, you’re very lucky to have a very easy option to collect cash and downsize your life completely scot free. This is not a hard decision. [/quote]

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