Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




In dept please help

Reply to topic
Money Talk > Credit & Loans

Author Thread
Patwho
New Member


Cash: $ 0.65

Posts: 3
Joined: 02 Jun 2017

In dept please help  Reply with quote  

Hello, I am in 100,000 dept in credit cards. We make about 120,000 per year. I could add about 15,000 more this year. We are late on all credit cards by 7 months. I can only see two out comes. What I want to do is take a loan from my 401k for 50,000 and settle the credit cards with that. I am insolvent by about 60,000 and would not owe taxes on the settlements. My wife wants to declare bankruptcy and we would have to go with a 13. The payments are about 8 to 9 hundred dollars a month. I don't think this is a right way to go. She can get a second job but has lupus and she is sick a lot. The payments would be about the same. Please help. Our credit is bad.
Post Fri Jun 02, 2017 2:36 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 729.05

Posts: 3545
Joined: 21 May 2006
Location: arizona
 Reply with quote  

More data please. Young/old? Kids? House? Cars? What did yu buy with the$100,000? (Can you sell it?)
Post Fri Jun 02, 2017 4:30 pm
 View user's profile Send private message
Patwho
New Member


Cash: $ 0.65

Posts: 3
Joined: 02 Jun 2017

 Reply with quote  

Hello, my mortgage is 2900 which includes taxes and insurance. Cable is 150, food about 250, electric 150, oil 100, car payment 399(9000) left., gas about 60 week, I am 45 and my wife is 43, we have two kids, one is going to be a senior and the other is in10th grade. My house is worth 360,000 and my moragtage is 309,000. I looked at renting houses around where I live but they are around 2100 to 2500 a month. We took a lot of vacations so really not a lot of stuff to sell. I don't want to scam but I just don't see another way out right now. If I did take put the loans we should be able to repay in about 2.5 years. Thanks So much!!!
Post Fri Jun 02, 2017 4:56 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 729.05

Posts: 3545
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
and would not owe taxes on the settlements.


Your lenders may settle. They assume that you will never make good on your loans, so they decide to accept something rather than nothing. But that stays with you for a very long time, as you can imagine, lenders don't like it when you stiff them.

One answer would be to sell the house and rent a 2 or 3 bdrm apartment, that would net about $50k from the house sale. Then take the $50k 401k loan. Use the $100k to pay off the loans in full. If you can rent the apt for $1500/m that cuts $1400/m out of your budget, that will make it easier to make that $4800/yr car payment. Your current house payment is $36,000/yr, you might be in over your head with that, that must be close to half of take-home pay?
Post Fri Jun 02, 2017 9:01 pm
 View user's profile Send private message
Patwho
New Member


Cash: $ 0.65

Posts: 3
Joined: 02 Jun 2017

 Reply with quote  

Hi Old guy, thanks for responding, our take home pay w/o ot is 7200 after taxes. Does this change anything for you?
Post Fri Jun 02, 2017 9:41 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 729.05

Posts: 3545
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
7200 after taxes. Does this change anything for you?


No - the $41,000/yr house/car payment is 48% of your $86,000 after tax income. Ie, you are spending almost half of your income on just two bills. That is unsustainable, it's no wonder you went under. The rest of your bills - groceries, electric, water, medical insurance, school costs for kids, cable, cell phones, tires, clothes, shoes, bicycles, christmas, new glasses, dentist. All that stuff adds up, cuts into your remaining $45,000. (Groceries, lunches, fast food, snacks - food alone is about $9000).
Post Sat Jun 03, 2017 1:54 am
 View user's profile Send private message
himanshu20170
First Time Poster


Cash: $ 0.20

Posts: 1
Joined: 11 Aug 2017
Location: meerut
hearts card game online free  Reply with quote  

If you are really a game lover then you know that free online hearts game is really an amazing game you love to play this game on your free time.
Post Fri Aug 11, 2017 8:27 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016