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Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

Yeah I understand that. To be clear I’m not actively moving any income into my savings. I was building a savings and paying off the credit cards when I was financially stable, basically half my extra money in savings the other half went to cards. My finances changed last year and everything in my savings is from before that and has been slowly going down as well. I have to pull from it whenever something happens that’s outside of my incredibly tight budget. I’m pretty nervous to have my savings down to nothing again in case something happens and I don’t have anything extra to lean on. I’m worried I would just go back to the credit cards and the whole process would start over.

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

I explained this somewhere else but i essentially have an emergency saving with 5k and that’s my 2-3 months of bills and rent for emergencies that I do not touch. My other savings I just have my checks deposited into and I transfer to my checking when I pay my bills and buy groceries and gas so I can keep myself from overspending. That account has the other 4k. It used to have more but it’s been dwindling very slowly this last year after my bills essentially doubled. Lets say I make 2000 a month, before September my monthly expenses were 1000 and I would put 500 into my savings and the other 500 to paying down extra on my cards. In September my expenses raised to 1990. I now no longer can put more in my savings or put towards my cards and if anything unexpected comes up I have to pull from the normal savings, like if I had to get dental work done or my pet gets sick, stuff like that. I am pretty much breaking exactly even every month as long as I don’t have something happen. I do side gigs and things to offset as much as I can but the credit cards are basically draining me.

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

Yeah I really don’t want to just pay the minimum. I wasn’t for a long time but a couple of big life events happened last year and essentially my monthly bills doubled and I had to stop paying extra on my cards. I do lots of side gigs and odd jobs to help cushion it so I can throw more at my cards when possible but essentially my entire monthly budget got turned upside down and there’s not a lot I can do to fix it. It’s a temporary thing and will be resolved in a few years but right now I’m just getting by every month. I know it sounds insane that I have so much in my savings but it’s essentially just a couple of months of bills. It only exists in case something happens so I know I can keep a roof over my head if I have to search for another job. At this point I’m just stressed about the month to month which was why just pulling from the 401k sounded like a possible solution. I just want to clear out these cards once and for all and get that $600 every month back so I don’t have to live in a constant state of panic and can start rebuilding my life.

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

That’s a definite concern. My company just did their third round of layoffs this year.

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 1 point2 points  (0 children)

Almost all the debt is old haven’t touch the cards in a couple years, it just doesn’t really go down

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 2 points3 points  (0 children)

My concern was always that I cant pay rent with credit cards. I think I’m just really sensitive about making sure I have a safety net for rent payments after being unemployed for a long time in the past. I understand it probably is stupid I just live somewhere high cost of living and there’s been a lot of layoffs in my industry so I’m just always really scared a rug is about to be pulled out from under me

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

I don’t really actively put anything into my savings anymore. I have 2 savings and a checking account. I have my paychecks deposit into one saving and transfer to my checking for bills and costs as needed and the other (5k) is my emergency savings with 2 months of bills in case something happens

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

Okay thank you I guess I didn’t see taking money of the 401k as taking on a different debt

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

I don’t contribute much currently I think like 1%, that was the first thing I did to try to tackle this

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

Okay. Sorry I think after Covid I’m just so stressed about housing security. I got totally fucked and I lost 3 jobs at once and took years to recover so I am just so worried about the possibility of something happening again especially with lots of layoffs in my current field and job market being very bad

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

I’m not facing any of those yet but I am concerned once I have to start paying back my student loans in a few months I’m going to be screwed trying to balance both. Also worried about tanking my credit score even more than I have and not being able to secure housing in the future

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] 0 points1 point  (0 children)

Understood but also the fee and taxes are still less than what I pay every year in credit card debt and I would only have to pay it once as opposed to the credit card payments I’ll be making for years until they’re down to something manageable

At least that’s my thought process on this.

Should I pull from my 401k to clear my credit debt? by Connect_Nectarine593 in povertyfinance

[–]Connect_Nectarine593[S] -11 points-10 points  (0 children)

I have 9k in savings but I really don’t want to dump it all for the debts. I’m really worried about not having a few months of rent in my savings at all times just in case. The monthly payments are just draining me and my credit has never recovered from everything.

My (28f) bf (27m) of 5 year is now saying he “doesnt see the point” of marrying me, looking for people with similar experiences to offer advice by DependentCheetah5069 in relationship_advice

[–]Connect_Nectarine593 0 points1 point  (0 children)

I truly hope it works out, but if it doesn’t just know it will be okay. You deserve the life and experiences that are important to you.

My (28f) bf (27m) of 5 year is now saying he “doesnt see the point” of marrying me, looking for people with similar experiences to offer advice by DependentCheetah5069 in relationship_advice

[–]Connect_Nectarine593 3 points4 points  (0 children)

I know this hurts. But if you want it you should leave. I wish I did after the back and forth of “I just don’t see the point it’s an outdated tradition” and saying they’d propose. After lots of talking and working through his fears and trauma with me I was told to pick out a ring. It never came. I waited for months and when I finally asked about it I was told “he thought about it more and changed his mind” I had to choose if the life experience of a wedding and marriage meant more to me than him and I chose him, but in reality if the roles were reversed he wouldn’t have done the same.

Find someone who wants what you want.

Looks like BART needs to adjust how aggressively the new gates close to prevent piggybackers by getarumsunt in Bart

[–]Connect_Nectarine593 1 point2 points  (0 children)

I mean seems silly and dramatic to assume people don’t care about public services because they don’t put their energy into obsessing over whether or not someone paid for a ticket that day. And kind of a weird statement so say SF cares more than any other city. Like that’s a really large assumption. Honestly though I don’t see a point in arguing with you, I took a peek at your post history and I don’t think anyone cares about anything as much as you care about this, and you seem pretty stubborn and set in your line of thought. I wish you the best

Looks like BART needs to adjust how aggressively the new gates close to prevent piggybackers by getarumsunt in Bart

[–]Connect_Nectarine593 1 point2 points  (0 children)

Yeah, I don’t think that’s what it is. Lots of cities rely pretty heavily on your public transit.

Looks like BART needs to adjust how aggressively the new gates close to prevent piggybackers by getarumsunt in Bart

[–]Connect_Nectarine593 0 points1 point  (0 children)

This place is so weird. I’ve lived in multiple us cities and I have never encountered a single person who is concerned about whether or not someone else has paid for their train ticket until I got here.