Pertinent info, I'm 29 and in the USA and I was homeless for a few months living out of my car, lost my job due to medical reasons and just recently got back on my feet somewhat. I got a job that pays a bit more that liveable wage in my area but I'm massively in debt. I have roughly 7k in credit card debt and around 3-4k left on a car loan where i no longer have the vehicle. (I'm unsure of the exact amount since i can't look at the car account anymore)
A bit before i became homeless i stopped making payments on the car and credit in attempt to keep my own apartment and myself fed. Due to me not making payments in so long the loan providers taking me to court and im unsure of what to do.
Now on to my actual question i have a 401k through a previous employer that amounts to roughtly 16k, would it be a wise move to just accept the 10% lose + tax on cashing it out early to try to settle the loan debt and use what's left over on the credit cards?
My main worry is with the loan i make enough at the moment that I'm eventually going to dig myself out of the cc mess(already managed to pay one of them off). Also the reason i didn't use the 401k earlier was because i wasn't really aware of it. I knew i had one from that employer but i wrote it off after that job ended, received a statement about it and figured out how to check on it after the whole homeless debacle.
Submitted April 02, 2022 at 05:24AM by Regressivefire https://ift.tt/C9oF5rj
