Help me

[Sal Sagev]

I have roughly $39K in debt spread out among 4 accounts, interest rates vary from 16.24 to 23.99%. I WANT to pay them off (I got into this hole and I'll work my way out of it) but I am frozen with panic on how to.

I stuck in a cycle of just paying the minimum and I've seen the balances just go higher and higher. I'm toying with idea of withdrawing from 401K but nervous of consequences of that.

I just figured by using the loan I can just end the insanity and end paying the insane rates.....any guidance is appreciated.

Thanks,
Sal S

[Nutria]

Hi, Sal.

• Know where all of your money goes each month (including cash). Then categorize it.
• You're beyond broke. But are you living wealthy?

Those two issues you must determine before eliminating your debt.

[bjl584]

Can you provide more details?

A complete financial picture would be helpful.

Without knowing anything else, a 401K loan for the purpose of paying off credit card debt is not a good idea.

[disneysteve]

Can you provide more details?

A complete financial picture would be helpful.

Without knowing anything else, a 401K loan for the purpose of paying off credit card debt is not a good idea.

I agree. We need a lot more information to answer your question. Itemize the debts for us. How much do you earn? What are your monthly expenses?

Also, how did you acquire the debt? If it was to buy "stuff", how much of that stuff do you still have that you can sell to recoup some of the money?

Raiding your future to pay for your past is rarely a good idea.

[msomnipotent]

Can you provide more details?

A complete financial picture would be helpful.

Without knowing anything else, a 401K loan for the purpose of paying off credit card debt is not a good idea.

A 401k loan might be a valid option for him as long as his job is safe and he can make the repayment plus keep his contributions intact, but OP said withdrawing and not borrowing. I wouldn't withdraw retirement savings for this. I would check into joining a credit union and getting a personal loan, depending on the rates.

[SavingMoneyGoals]

There are some great suggestions here. My advice would be not to over-think it because sometimes, overthinking might result into panic, at least for me. Once you make up your decision on what you're going to do, just focus on doing that. Allow nothing to stop you.

[Outdoorsygal]

This was eeons ago. But we used Consumer Credit Counseling down in Sacramento, a non-profit
An attorney called our creditors and got our rates lowered. We sent them one check each month for years
They paid each of our creditors. We promised never to use a credit card again
This paid down the balances much much faster leaving our credit intact.
When you see the debt numbers drop, it's very motivating.

I believe many of these types of things are scams so be careful. Just because it says non-profit doesn't mean it is an honest set up

If you are confident and good on the phone, call them yourself and tell them you cannot afford to keep paying. You can only afford so much per month so are in a bind
Then ask for a lower rate

.