UnThreaded | Threaded | Whole Thread (69) | Ignore Thread Prev | Next
Author: cable666 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 311074  
Subject: Re: Crazy Machine - Part II Date: 6/10/1998 10:56 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (69) | Ignore Thread Prev | Next


TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.