401 k

You can but it is not a good idea. If you withraw it will cost you penalties and it you borrow, you will pay interest. It is never recommended that you take this route.

i knew it seemed a little too easy... :cry: i guess my next step from what i have been reading is to figure out a payment plan and actually starting answering these collection calls.

Also if you are still employed, I don't think you could withdraws the money and there would be certain stipulations for accessing your 401k money and I'm not sure that your reasons would be considered hardship. As far as a loan from the 401k, I think there is a limit to the amount of money you could borrow from it. Trying to remember these things from when I worked with 401k's several years ago.

Also, like Soaplady said - NOT a good idea to touch your 401k - but I would have to say if it's that or a PDL or other high interest loan - I would look at the possibility.

yes, i am still employed so it would be difficult to withdraw...i have received an offer to only pay 60% of a balance but i do not have enough money available currently.....i don't suppose you can accept the offer and then start making payments on the amount?

Yes you can do that. But my recommendation is to wait for the debt to season a little more. Medical bills are not the easiest bills to settle, if you recieve a 60% settlement that's not bad. Your credit cards (depending on who the creditor is) you can get as low as 30cents on the dollar. Keep fighting.