Anonymous wrote:I would rent a cheap one bedroom for a year and try to pay off the cc debt that way.

You also have to factor in moving costs and the hassle of moving. Sounds like you have an easy commute -- I would stay.

Anonymous wrote:You are right guys. Deep down, I do know is not the right decision. .... I don't have family around, so living with someone would not be an option. . Congrats PP on paying off that 50k

I've heard of a service called CoAbode which is more or less a room mate/house sharing finder service for single parents. I'm not familiar with the service myself so I can't comment on it, but it may or may not be worth checking out.

Anonymous wrote:

Anonymous wrote:I live in Arlington and work in Tysons, it takes me 25 minutes door to door. 45 mins seems like a lot, don't think that is an accurate estimate. You will get good schools in arlington

Maybe it depends on where?? My coworker lives in shirlington and always complains about the traffic. She said it takes 45 min

Definitely the links that were provided are from N Arlington, which is a shorter commute, so don't write it off

I need to hear OP say she's going to stop paying extra on a 3.3% car loan when she's carrying credit card debt at 20% plus.

Anonymous wrote:

Anonymous wrote:You are right guys. Deep down, I do know is not the right decision.

OP, I'm a PP who offered advice on earlier pages. The right decision is easier to make when it is staring you in the face.

Your math is still too fuzzy. You need to improve how you track/control your spending. I think you should get YNAB, which is a budgeting software. If you want to get out (and stay out) of your cc debt without cashing out your 401K, it will take a plan. Budgeting software will help you make the plan.

+1000!

I'm the pp working on $50k in debt and totally agree. YNAB has been instrumental in getting a handle on our spending. Totally worth the cost and sooo much better than something like Mint.com.

Besides cutting cable, you can try downgrading your internet. I have comcast and cut my internet bill in half by switching from the highest internet speed to the lowest. I don't notice any difference in my video streaming.

I wouldn't cash out the 401k. Make a budget and figure out how to pay your debt off by cutting expenses or increasing your income. The Dave Ramsey plan is great for people in debt. If you just use your 401k to get yourself out of debt without cutting expenses and following a budget, you will just rack up debt again.

Anonymous wrote:You are right guys. Deep down, I do know is not the right decision.

OP, I'm a PP who offered advice on earlier pages. The right decision is easier to make when it is staring you in the face.

Your math is still too fuzzy. You need to improve how you track/control your spending. I think you should get YNAB, which is a budgeting software. If you want to get out (and stay out) of your cc debt without cashing out your 401K, it will take a plan. Budgeting software will help you make the plan.

Anonymous wrote:I would cash out the plan. I've done it in the past when we were in a tight spot. They don't automatically take taxes out of the distribution unless you ask them to. Otherwise, the IRS will factor that into your income when you file taxes next year and you can pay the taxes then. If you have a child, it's likely that you receive a refund each year. If this is the case, it will simply lower your refund next year.

I would ONLY do this, in your case, if you cut up the credit cards. Keeping them around with a $0 balance will be too tempting. Maybe also look into signing up for a money management class. But you're young and have plenty of years ahead of you to aggressively contribute to your 401k as your child gets older.

This is seriously some terrible advice, OP. Please ignore it.

Don't throw in the towel, except in a case of dire emergency! This isn't one.

1. Call the card company and work out a lower rate.
2. How much longer do you have on your car? and how new is it? if you have about a year of two left, keep the car until it dies. Don't get a new one. That's $350 more you have to pay down debt--that's a lot 350*12=$4,200
3. Also, you're child is 4 and will start pre-k soon. So that will cut your $1,300 childcare expenses in half. That's a lot $650*12=$7,800
4. Apartment, I'm not stressing this as much. I know housing in this area is expensive and $1,600 for a 2 bedroom in a safe area is actually reasonable. You have to feel safe and reasonably comfortable where you live.
5. Everything else is fringe. You already have reasonable cell phone, internet+cable and gas expenses. Not sure why people here suggest gutting cell phone and internet--It's not only for entertainment, it's how we do business and get information.
6. Stay calm, you can do this. The major items are your car note and childcare expenses which will be lower soon. $350+$650=$1,000.. that's an extra $12K per year to pay down debt and save. And remember to save. Get in the habit now. If only $50 a month. The habit is important.

Good luck

Op here... The 401k is with my previous employer. I can leave it there, roll it over or cash it out.. and about money management, I actually work in credit ......, I know ironic

pp again. Is your 401k plan with your current employer or a past one? You mention cashing out but I think that's only possible if you're no longer a current employer. Perhaps you meant 401k loan?

I would cash out the plan. I've done it in the past when we were in a tight spot. They don't automatically take taxes out of the distribution unless you ask them to. Otherwise, the IRS will factor that into your income when you file taxes next year and you can pay the taxes then. If you have a child, it's likely that you receive a refund each year. If this is the case, it will simply lower your refund next year.

I would ONLY do this, in your case, if you cut up the credit cards. Keeping them around with a $0 balance will be too tempting. Maybe also look into signing up for a money management class. But you're young and have plenty of years ahead of you to aggressively contribute to your 401k as your child gets older.

Do not do this. Like it or not your 401k IS your emergency fund right now. Paying some interest on credit cards isn't the end of the world - having zero savings can be. Just figure a way to whittle down that card balance and lower the interest rate. I would rather see you refinance the car than pull out the 401k.

So I called the Plan again today and they said stated that my balance was 12599. If I cash it out, they will retain 20% for federal taxes and 4% for Va state taxes and at the end of the year I will have to pay more if the IRS decides that it wasn't enough or get some money back if it was too much. I am really torn about this decision. On one hand I feel like it would be so easy to just cash this out and pay off my debt. On another, I am not totally sure it's the right decision

They will take 10% off the top(IRS early withdraw penalty), 20% is the federal taxes you have not paid on the money(it depends on your rate, could be higher), 4% is state and I think you will have to paid ss and med as it will be counted as income for the year. The 12k could push you in to a higher bracket and you may owe more money next year in taxes.

Anonymous wrote:I live in Arlington and work in Tysons, it takes me 25 minutes door to door. 45 mins seems like a lot, don't think that is an accurate estimate. You will get good schools in arlington

Maybe it depends on where?? My coworker lives in shirlington and always complains about the traffic. She said it takes 45 min