Need Advice on Whether to Use an IRA to Pay off Debt
Based on my current situation, I am considering whether using my retirment fund would be a worthwhile option to pay off my debt. My debt is a result of several years of serious medical expenses; I was using my card to buy necessities while I paid off my bills. I had just paid my last doctor bill and was planning to snowball that money to my credit debt (which I was only able to make minimum payments on during that time) when I got laid off last month. I am 34 years old (single, no kids), living paycheck to paycheck with no savings. I have $11,000 in debt ($11,500 CL at 9.9%). My average credit score is 730. I have three lines of credit but only one card has a balance. I have tried applying for new credit to do a balance transfer but was denied. It also doesn't make sense to use my other cards to pay this card down since their APRs are higher. I have severance pay for two more months but when that time is up, if I'm still unemployed, I will not have any income to even make minimum payments, let alone pay for basic living expenses. As it is, I am wondering if it would be wise to use my retirement account to pay off my debt. It is worth $30,000 and I am fully vested. The account accrues until January when my severance ends and I will then have to transfer it to an IRA, preferably a Roth. I already have another IRA set up (it's a nominal amount) and would like to transfer that to a Roth as well. Now, I'm very naive about these IRAs and am not sure how much I would be penalized for a withdrawl but can only imagine, since I've already paid $1000 in interest on this credit card so far this year, that the penalty would be somewhat equivalent to the money I'd lose in interest paying off the card over time. Does this sound like a good strategy? I'm telling myself that based on my age, knowing I would still have money in this account, and that not having the debt will allow me to make up for what I withdrew with income and benefits at my next job, that maybe this is a good option. Even if I have a job by January, unless it's making much more than I was, I will still be living paycheck to paycheck in an attempt to pay off my debt. So, God knows paying this card off, period, would be a huge stress relief. I don't want to do this if it would be detrimental in the long run though. Anyone out there knowledgable in this regard that can tell me if this is a smart decision
Categories: General Credit Tags: account-accrues, buy-necessities, card, credit-card, debt, having-the-debt, interest-paying, laid-off-last, living-paycheck, Money, retirment, retirment-fund, serious-medical, severance, smart-decision
Forced to quit my job
My employer, a major national bank, announced a massive layoff of employees this week and those affected would receive 30 days pay (without actually having to work), a severance package and access to unemployment benefits. A select group of individuals, myself included, have been spared a layoff notice but are being forced into a new overnight schedule that would be impossible for me to work with
Categories: Mortgage Tags: accept-the-new, bank job, constructive termination, employee, hours-or-trade, layoff notice, massive-layoff, overnight schedule, Regular, schooling, severance, severance package, severance-pay, student, teaching credential program, trade-positions, unemployment benefits, work-the-new
Shell game with my position
I was terminated by my employer, along with several others in the same position. We were told that they had to reduce their headcount due to a revenue decrease and therefore they were eliminating the position.
Categories: Mortgage Tags: attorney-told, circumstances, different-job, eeoc, employer, headcount, headcount-due, hiring, firing, job title, legal, litigation attorney, Position., recourse, recourse-under, several-others, severance, shell game, sign-it-because
told another reason of layoff
Hi i have a question i worked for a company for 5 years and did my work and applied myself abve and beyond what was expected of me.
Categories: Mortgage Tags: 30 minutes, being-employed, bulding, chairs, departments, drs, employee, experiance, feel-as-though, girl, girls, hiring, firing, layoff, new furniture, payroll, positons, room, severance, shut-the-door, situation, time-off-waht
Terminated after missing 6 consecutive days of work
I have been sick off & on the past 4 months and just recently had a severe infection where I ended up missing 6 consecutive days of work, visiting a walk in clinic once & the ER twice in that time period. When I returned to work, they didn't even ask me for a Drs. note but after 3 days of work I was terminated stating my position was eliminated.
Categories: Mortgage Tags: 10 years, 4 months, acceptable, buzz, consecutive days, coworkers, drs, employment, employment-ends, kinda-fishy, office, Position., severance, severance agreement, time-period, walk in clinic
Severence agreement and Unemployent
Does this paragraph on a severence agreement mean I am not to apply for unemployment?
Categories: Mortgage Tags: agreement, Benefits, breach of contract, breach of fiduciary duty, breach of public policy, contract breach, covenants, employee, employer, employment-laws, federal employment laws, general-release, good-faith, including without limitation, other-benefits, severance, severence agreement, termination of employee, unemployent, variouse, variouse-state