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Using 401k to clear debt...............


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 3 months ago '19        #26
crawlingtulip 
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 qutaboi225 said
They won't let me go into my 401K unless i'm in a dire situation i.e bankruptcy, foreclosure, terminated. My bonus and stock option check is about 1 month away to the tune of about 25k-30k. I'll use that to just pay my debt down.
good don't use your 401k

Just throw your entire monthly income at your credit cards and use the freed up balance to pay off your monthly expenses

as long as income > expenses you will pay it down quickly. If you need to pay a bill that doesnt take credit card use Plastiq, they charge a small fee but its worth it in the grand scope of things


 3 months ago '07        #27
kyhoopsgoat 
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 qutaboi225 said
They told me that i could only withdraw that much if im in foreclosure, terminated, or ill etc. I guess different companies got different rules.
I have Fidelity and requested a withdrawal from my account stating it was for purchase of my principal residence. When requesting it, they said a hardship withdrawal CANNOT be used for mortgage payments and told me documents would be needed showing a copy of the Purchase and Sales Agreement, including date, seller information, and property information.

However, Fidelity never asked for any of this information after I made the request and cut me the check 3 days later. Maybe I lucked out.



Last edited by kyhoopsgoat; 11-22-2019 at 11:25 AM.. Reason: Broken smilie.
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 3 months ago '15        #28
TheCompanyMan 
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Itís taxed almost half so consider that during tax season.
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 3 months ago '05        #29
pnoi89 
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 qutaboi225 said
They won't let me go into my 401K unless i'm in a dire situation i.e bankruptcy, foreclosure, terminated. My bonus and stock option check is about 1 month away to the tune of about 25k-30k. I'll use that to just pay my debt down.
You should still be able to pull out, you'll just be subjected to a 10% tax rate penalty for early withdrawal on top of normal tax rates.
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 3 months ago '04        #30
qutaboi225  topics gone triple plat - Number 1 spot x6 OP
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 crawlingtulip said
good don't use your 401k

Just throw your entire monthly income at your credit cards and use the freed up balance to pay off your monthly expenses

as long as income > expenses you will pay it down quickly. If you need to pay a bill that doesnt take credit card use Plastiq, they charge a small fee but its worth it in the grand scope of things

+1   

 3 months ago '17        #31
2007 
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Honestly, if YOU believe youre doing the right thing, do it. Heres a little tip to offset the penalties for withdrawing from your 401k. Start a transportation LLC, hire a trustworthy accountant, and then write off as much as you can..legally.
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 2 months ago '18        #32
Jayro 
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 crawlingtulip said
Late payments within 24 months hurt your credit the most. Goodwill letters don't work as well as they used to but I would try. I can send you one if you PM me.

As far as your debt how much are the interest rates on the credit cards?

ALWAYS pay your credit card, as long as your income > expenses there is no reason to miss a credit card payment. If you make $500 on a check $500 goes to your credit card and you use the freed up balances to pay your expenses. The credit card company registers that you paid ON TIME and you pay your bills


PM the good will letter playa

 2 months ago '19        #33
crawlingtulip 
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 Jayro said
PM the good will letter playa
How recent are your late payments? Also how many?

 2 months ago '05        #34
Tha Boss 
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 crawlingtulip said
Late payments within 24 months hurt your credit the most. Goodwill letters don't work as well as they used to but I would try. I can send you one if you PM me.

As far as your debt how much are the interest rates on the credit cards?

ALWAYS pay your credit card, as long as your income > expenses there is no reason to miss a credit card payment. If you make $500 on a check $500 goes to your credit card and you use the freed up balances to pay your expenses. The credit card company registers that you paid ON TIME and you pay your bills
Can I get that goodwill letter?

 2 months ago '19        #35
crawlingtulip 
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 Tha Boss said
Can I get that goodwill letter?
Shoot me your email my guy via PM

 2 months ago '17        #36
Brother Sloan  topics gone triple plat - Number 1 spot x9
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 2007 said
Honestly, if YOU believe youre doing the right thing, do it. Heres a little tip to offset the penalties for withdrawing from your 401k. Start a transportation LLC, hire a trustworthy accountant, and then write off as much as you can..legally.
More info

 2 weeks ago '14        #37
cominup7 
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I'm glad it's a thread on this, I was just in a jam and needed some free cash...did some research and realized why not use my retirement acct?

The more I looked into it I saw how these retirement accts are really just a scam for traders and companies to keep us "lower class" people where we are. So much so that when you're hired, you're automatically enrolled into the retirement plan, it's not even an option like most other benefits

Reasons why you should withdraw:
1. It's your own damn money-why am I being penalized when I want to take it out?
2. Inflation. The main argument against retirement withdrawals is that "look at all the millions you'll be missing out on in 30years!"
At the current rate of inflation that millie is gonna be more like 350K, IF that, in 30 years. And that's even If you survive to see it
3. Why are the stock traders, hedge funders and big wigs making money off of your investment daily but not you?
4. The corporate exec's want you to keep working for THEM and making THEM money while they sell you that million dollars-down-the-road pipe dream.

Now everybody's situation is different, and if you're like OP with a lot (over 20K) saved up then you might want to think long and hard about it. But for those of us with a hustlers mentality and a growth mindset, I would prefer to bet on myself and invest that money they take out my check on my own
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