Thank you in advance for your opinions. My wife recently accepted a new position that pays her 30% less than her previous high stress, no flexibility job. I knew things were going to be tight, and I had thought I had figured out what our new budget would be but I was off. Here are the details of our monthly situation as a family with two small kids.
Our Retirement Accounts:
Wife's TSP: $153.802 (plus a loan that has $28,000 left on it)
My 401k: $61,300
Fidelity Rollover IRA: $48,238
Here are the few options I'm considering:
A) Getting into a nonprofit debt management program to consolidate our CC debt into one payment with a much lower interest rate. (8-10%) In doing so we close all credit cards except for 1. This would be the second time we have been in such a program.
B) Not paying the TSP loan and let it go default. But we would have a hefty Tax payment come next year right? We would be taxed on our remaining balance of 28,000
C) Cashing out my 401K to pretty much eliminate all CC debt. Dumb move in the long run, I get.
Bad decisions on our end, living outside our means for way too long. It caught up with us and now were F'd. Any advice is greatly appreciated. Thank you so so much in advance!
- Our Net Income: $8800
- Expenses: - $9000
- This includes 2700 mortgage, 2000 daycare for both kids, 1000 car payments, 240 car insurance, 200 cell phones and internet, 140 affirm loan payments, 105 home warranty, 690 my Wife's TSP loan from previous job with the government, and $1400 in credit card payments. and a few other smaller things. This does NOT include day to day expenses like gas, food, clothes... etc.
- This includes 2700 mortgage, 2000 daycare for both kids, 1000 car payments, 240 car insurance, 200 cell phones and internet, 140 affirm loan payments, 105 home warranty, 690 my Wife's TSP loan from previous job with the government, and $1400 in credit card payments. and a few other smaller things. This does NOT include day to day expenses like gas, food, clothes... etc.
Our Retirement Accounts:
Wife's TSP: $153.802 (plus a loan that has $28,000 left on it)
My 401k: $61,300
Fidelity Rollover IRA: $48,238
Here are the few options I'm considering:
A) Getting into a nonprofit debt management program to consolidate our CC debt into one payment with a much lower interest rate. (8-10%) In doing so we close all credit cards except for 1. This would be the second time we have been in such a program.
B) Not paying the TSP loan and let it go default. But we would have a hefty Tax payment come next year right? We would be taxed on our remaining balance of 28,000
C) Cashing out my 401K to pretty much eliminate all CC debt. Dumb move in the long run, I get.
Bad decisions on our end, living outside our means for way too long. It caught up with us and now were F'd. Any advice is greatly appreciated. Thank you so so much in advance!