Thanks for all the feedback. I've been giving this a a lot of thought lately. Some people have said the solution is simple... liquidate $100K of my 401K and pay off the CC's, or borrow $50K and pay most of them off. Unfortunately, it really isn't that simple.I already have a $30K loan against the 401K that I'm paying $600 a month on. If I could refinance this loan for $50K, that gives me $20K to apply towards the CC's. Plus, I don't know if I can afford the higher 401K loan payments, plus any other payments I need to pay off the rest of the balance.Also, I don't think it is a good idea for me to take on more debt. The best solution is to liquidate assets and pay down/off my debts.FYI: This 401K loan is my only other debt, and it is a secured loan.Which opens up the problem. How does one go about liquidating part of their nest egg to pay off credit cards? I'm going to start a new thread to discuss this subject.If I can't liquidate part of my nest egg, I need to negotiate a payment shedule with the CC's. There are two paths I can take here.(1) Forgivness of part of the debt. The problem with this is that I would have to pay about 35 cents in taces for every dollar waived. The get the debt down to a level where I can afford to pay *some* debt plus the taxes on the waived debt will be much lower than the CC's will tolorate.(2) Freeze interest and fees, and make small payments at first, larger payments later as income becomes available until the balance is paid off, no matter how many years this takes.I'll float the ideas to the CC's.
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