Loan on 401K + Credit Card Debt
Date: Sun, 10/16/2011 - 07:40
I would like to settle my debt myself. How should I proceed? If that is not possible what is good settlement company to go with?
I am totally current with payments but next month there are going to be BIG problems.
From what I see is that you have to be at least 2 months late on your payments.
All this is making me worry and taking a toll on my health :sad:
Dont think you can settle on a 401k loan. I have googled it and
Dont think you can settle on a 401k loan. I have googled it and can find nothing about it. There would be major tax implications and penalties at the very least.
What creditors do you owe on the credit cards?
Yes, I agree with SOAPLADY on this that you should never even tr
Yes, I agree with SOAPLADY on this that you should never even try to settle the 401K loan. There are some severe tax implications on that. It is better to pay off the loan on this as fast as possible. As for the other one, you have mentioned that you have not yet missed payments on that. So, I think you can try to get a re-payment plan on that debt so as to make the payment terms affordable.
you cannot settle a 401k loan -- the only way to stop making pay
you cannot settle a 401k loan -- the only way to stop making payments to that is to change jobs -- however, the loan becomes a distribution then and the amount you took out is taxable. You will have to pay taxes on the distribution. If you pay the loan back, then it is not, but I am not sure of the timeframe -- 60 - 90 days or not --
As far as the credit cards, yes they are able to settle -- but you need to be at least 90 plus days late to settle. And all companies are different -- some are easier some will sue quickly -- cap one, discover, they sue -- and cap one I was not able to settle with -- discover I got 50 percent --
good luck
