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Hello All,

I'm new to fool and desire advice on the best way to pay off my CC debt.
I have approx $20k in CC debt. One of the cards has approx $15k on it and the minimum payments have become overwhelming.

Current situation:
- unemployed (no unemployment benefits)
- minuscule savings and checking account
- hopefully will have new job early/mid January
- age 30

I haven't missed a CC payment in 2+ years. (only time its happened was due to no auto-pay).

Possible Solutions:

1) 401k Withdraw- Withdraw from old 401k account(approx $10k in it) and face the penalties? Should have somewhere around $6k after tax and withdrawl fee. Any advice on how to minimize tax/penalty damage if I withdraw in 2016 vs. 2017? I should be in lowest tax bracket for 2016.
(Could use $4-5k of the withdraw to take a chunk of CC debt out and have the rest for bills/living expenses?)
(I also have rollover IRA with approx $1k in it)
(Other retirement type investments I have are rental properties that I will not touch, and will be counting on to snowball for retirement income)
I figure that I could use $4-5k to help lower CC payments/interest, improve credit score over time and apply for new CC's with low interest balance transfer deals or a personal loan with equivalent or favorable interest rate.

2) Debt Relief Program- Spoke with a couple companies and they've approximated monthly payments which are lower than what I'm paying now between 2 CC's. (I'm hesitant to do these because I know my credit score which will take a major hit due to the CC accounts being cancelled and requirement by debt relief company to miss payments in order to renegotiate payments/rates). My credit score is approx (640-690) depending on the rating agency.

3) Miss some CC payments- In order to "get by" for now, I could just miss some payments or pay less than minimum. My credit score will take a hit, but it is the only option I have.

4) Try to negotiate debt relief myself- I wouldn't know where to start on this. Any chance the institutions will allow lower than minimum payments without penalty for my temporary hardship? From what I've read, you typically need to miss a handful of payments before they will even consider your case.


Any and all advice and guidance is much appreciated!

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