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Hi,
I have about 18k in credit card debt and am now unemployed. I have around 50k in my 401k. Since I'll be paying taxes on the 401k if I were to start using it at retirement age, what's the difference if I take the tax hit now and pay off expensive credit cards with their interest rates? Thanks Timofohio |
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TimofOhio, may I suggest talking to a Debt Settlement Company?
I am a financial Consultant and I work with people in debt having trouble paying their credit card debts, Medical bills, personal Loans, etc. Pretty much any type of Unsecured Debts. The company I am with is one of the select few that is compliant with each Attorney Generals regulations and laws and that can actually do debt settlement in all 50 states. We are able to guarantee cutting your debt down to atleast 55cents on the dollar.. so for you 18,000 would be brought down to around 8,000 dollars in debt. We also are insured by the FDIC and are able to get you into lower monthly payments, there is no interest with our program or hidden fees. I'd rather let me and my services speak for themselves rather than sit here and try to sell you on my company. If you'd like we can speak more about it in more detail since I cannot tell you how I can help out without knowing your exact situation. what I can tell you though, is that I will not set you up with a program that will not be beneficial to you. We provide many different payment options based on your specific financial situation. Also, just one more little fact, We actually help you file a hardship letter which will prevent the savings (ESCROW account) that we set you up with (In your name, not our company's.. you are in complete control of it) from being taxed at the end of the year so the full amount that you pay will be used towards your negotiations. So please if you are interested in hearing more please let me know or contact me. I am available anytime any day, I try to do my job anywhere I can because I feel that I don help people with their situations and to do that it takes more than simply working 9-5 if you know what I mean. Last edited by SafeTrustJeff; 11-24-2009 at 07:56 PM. |
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Did you actually read the post or are you not paying attention to it. Quit advertising this crap.
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I read his post and take it as you will, if I can help someone I'm not going to bite my tongue and watch how I give them the information they want or may need. I apologize that I typed the wrong username, I didn't scroll up enough.. we all make mistakes.
If you look into it Debt Settlement is a great solution for many people, not everyone of course, but if looked into may provide relief to some. I did not once advertise my company or say contact me and we will get you started, If he wants information he can contact me and I will speak with him, if he wants my help great, if not best of luck to him in however he decides to deal with it. I apologize if I offended you with the post, but if you were a firefighter and you saw someones house on fire, wouldn't you offer to help? Last edited by SafeTrustJeff; 11-24-2009 at 07:57 PM. |
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Since you’re unemployed, I wouldn’t take you last remaining survival money to pay off an unsecured debt. Especially 401K money! Also, you may need that money for rent/mortgage and other necessary living expenses in the future. Odds are in your favor for you to save the most money by falling behind on this credit card debt and letting the debt get sold off to a third party debt collector. Once this happens, the original creditor relinquishes their right to collect on the debt. This usually happens after about 6 months of non payment. Falling behind on your credit obligation will certainly damage your credit, but once the debt is sold to a third party debt collector, you are likely to negotiate a settlement for pennies on the dollar. Just make sure you have at least 50% of the balance available before you start talking with them. Otherwise it is pointless speaking with them - they don’t want to hear a story, they want money. Importantly, sending a debt collector monthly payments on a charged off debt is almost always the WRONG thing to do. Worst case scenario, should you get sued for not paying the debt (small chance but can happen), and you don't have around 50% of the original balance readily available to negotiate a settlement, THEN you may want to consider tapping the 401. Just don't go tap into your 401 for an UNSECURED DEBT to maintain your credit or fear of being sued. When making an important financial decision like this, always gather as much CREDIBLE information as possible on the matter and never make the decision based on emotional factors. Think business! Because that’s all it is.
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Quote:
I agree that Debt Settlement may be a good route for you to pursue, but you should know that it is not necessary to hire or pay a company to do it for you. You can talk to your banks directly to settle your debts, save the fee, and probably do a lot better than 55%. I settled over $200,000 of my own debt instead of filing bankruptcy. I settled most of it for about 35%. That would be only $6000 for you. So, is taking $8000K or so out of your 401K, paying the penalty, and using the rest to settle out the entire $18K in debt, worth the trade off for you. |
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