Diggitydave Posted August 22, 2009 Share Posted August 22, 2009 This is more of a vent but I wanted to get it off my chest. So Just after I get done paying off 3 credit cards, yes 3, (2 of which I paid off by taking a loan out of my 401k, so essentially i'm paying myself back). Anyway, so I wanted to apply for a forbearance with Sallie Mae because things are STILL uncomfortable right now. I only have about 100 dollars to last two weeks after every check. This covers gas, food, other stuff etc. Sallie Mae botched up my forbearance, 4 phone calls, tons of yelling and problems later, i am done dealing with them, fine i'll just forget about it... Anyway, like I said, it's just a vent. Just when I feel like I am getting a head with my finances, boom something happens and i fall behind again. Also keep in mind I am prob going to court for a defaulted loan (due to mental health issues) and may end up with even less money. I just want to catch a break... Link to comment
renaissancewoman101 Posted August 22, 2009 Share Posted August 22, 2009 Are your mental health issues documented? Like were you under the care of a doctor or even hospitalized? You might be able to use that as a defense (if you have to go to court), for why you defaulted on your loan. Link to comment
Diggitydave Posted August 22, 2009 Author Share Posted August 22, 2009 I could probably get documentation for that. Do you think that would help? Link to comment
renaissancewoman101 Posted August 22, 2009 Share Posted August 22, 2009 Yes, it might be a defense. Since you were "incapacitated" and could not handle your affairs at the time. Might buy you some time. To make sure, ask a lawyer. Link to comment
DropToZero Posted August 22, 2009 Share Posted August 22, 2009 You need an "emergency fund" of money... I would work on trying to get at least $500 - $1000 in the bank(and do not touch it unless something "bam" hits you). Then you can have a little safety net between you and the world until you can pay off these debts and loans back to your 401K. I know it might seem unreasonable to ask for that much, but I know you will rest a little easier if you can fight to just get that amount in the bank(and no, I do not mean to starve yourself of food or gas etc, THOSE COME FIRST). You need the necessities to ensure you still have a job and an income. If anything, the loans can wait, you need to be able to live in order to pay back the loans... and you need to come up with a budget to get back on track and work with the debtors to say "HEY! I can't live on $100 every other week, you're not going to get any money soon if I don't have a job or I'm so sick I can't work!" Give them a detailed plan of what you need to survive(and better than $100, please), and work it out so you can pay them back. Last thing, never borrow against your 401K or use a credit card again. If anything, your FICO score should be one of the least of your worries if you think they'll be mad because you're not paying back the minimums. Link to comment
Diggitydave Posted August 22, 2009 Author Share Posted August 22, 2009 i thought borrowing from my 401k was smart considering the interest rates onthe credit card i have been paying. Also I am just paying myself back right? Link to comment
DropToZero Posted August 22, 2009 Share Posted August 22, 2009 i thought borrowing from my 401k was smart considering the interest rates onthe credit card i have been paying. Also I am just paying myself back right? Using a quote from Dave Ramsey's financial peace university... "Never borrow against your retirement plan" "Borrowing against your retirement plan is a bad move. Even thought you pay yourself back some interest, it is nowhere close to what you would have earned if you had left the money in the investment. Plus, if you leave the company or die before it is repaid, you or your heirs will have 60 days to pay it back in full or you will be hit with enormous penalties and interest. Don't do it!" Link to comment
Diggitydave Posted August 22, 2009 Author Share Posted August 22, 2009 Using a quote from Dave Ramsey's financial peace university... "Never borrow against your retirement plan" "Borrowing against your retirement plan is a bad move. Even thought you pay yourself back some interest, it is nowhere close to what you would have earned if you had left the money in the investment. Plus, if you leave the company or die before it is repaid, you or your heirs will have 60 days to pay it back in full or you will be hit with enormous penalties and interest. Don't do it!" I researched this and it's actually a 1099 if you leave, but thanks for the info. I appreciate your help. It was 2k from 4k in there. Link to comment
DropToZero Posted August 23, 2009 Share Posted August 23, 2009 I researched this and it's actually a 1099 if you leave, but thanks for the info. I appreciate your help. It was 2k from 4k in there. Yeah I've never done it, so literally only have the advice from the class and others I've talked too--don't know much about the process itself. Even researching around a little bit, most still recommend against it. Yeah you don't have that much in there so it's not going to hurt that badly... some people borrow out too much and then get themselves in trouble. Link to comment
Diggitydave Posted August 25, 2009 Author Share Posted August 25, 2009 Thanks for all our help Drop, you'll get some cred Link to comment
Diggitydave Posted August 25, 2009 Author Share Posted August 25, 2009 Thanks for all our help Drop, you'll get some cred Link to comment
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