Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
I am in a catch 22.
My paychecks are low because I had to take out 2 401k loans to keep my house out of foreclosure. (They payments on these loans come right out of my paycheck every 2 weeks until they are paid back.)
One of the loans is almost paid off, and that makes me eligible to take out a new one for $16,000. This would pay off my car and a bunch of bills, but again the payments out of my paycheck would continue to wreak havoc on my take-home pay. BUT - if I can pay off these bills things should be better.
I just feel like I am in a circle - not enough income due to loans to pay off bills, then more bills, then more loans. UGH
My paychecks are low because I had to take out 2 401k loans to keep my house out of foreclosure. (They payments on these loans come right out of my paycheck every 2 weeks until they are paid back.)
One of the loans is almost paid off, and that makes me eligible to take out a new one for $16,000. This would pay off my car and a bunch of bills, but again the payments out of my paycheck would continue to wreak havoc on my take-home pay. BUT - if I can pay off these bills things should be better.
I just feel like I am in a circle - not enough income due to loans to pay off bills, then more bills, then more loans. UGH
It was a vicious cycle and hard to break. I actually owe a thank you to my ex-wife for helping me stop it.
We were deep in debt and instead of trying to figure a way to cut expenses she kept asking when I could get a loan again on my 401K. It really bothered me... we had no plans for the future and it didn't matter that I worked many hours and many years to get to the point where a 401K was starting to grow.
I tried for a couple of months explaining that after the loan was paid, my paycheck would be larger and maybe we could survive without another loan.
I'm glad I got to that point where a 401K loan is no longer an option. Yes, I can still do it but it would be the very last option available to me...