[‎‎‎‎‎‎‎‎‎USER]

My husband just told me he had gotten himself into some credit card debt and it’s been going on for about a year and a half ever since he had some medical concerns.

I had no idea. He’s know saying he’s thinking about taking the money out of his 401(k) and taking the tax hit.

I feel that’s a really bad idea. He has two credit cards one with a 30% interest rate in another with 11% interest rate.

I’m thinking maybe he should transfer everything onto the credit card with a smaller interest rate and just work to pay it off.

Any ideas or ways you guys have gone yourself out of this.

[Lisa]

One question – if it was medical debt, wouldn’t you have noticed he wasn’t feeling well?

[Kourtni]

The best way I’ve found to deal with credit card debt that has gotten out of control is taking out a personal loan to pay off the card(s) and then pay off the loan.

Personal loans generally have MUCH lower interest rates than cards do.

[Jesse]

Have him just take out a loan on his 401k. That way he pays off the cards but is paying himself back.

[Carol]

Consumer credit counseling can help figure out the best approach.

I agree with others that there is a major problem in the marriage somewhere, as well.

[Marilyn]

You should explore with your husband exactly how this happened. Late fees? No medical savings? Need better health insurance?

Marital secrets? What. Then devise a plan and a realistic budget.

I think you’ll need to be more involved with the financial aspects of your situation moving forward.

[Emily]

My first husband is dead or I would swear you have married him.
Verify that debt! I hope and pray the two of you can work this out.

Your problem has showed up as a financial problem, but there are so many much deeper issues here.

I sincerely wish you well

[Rachel]

First, if you haven’t already, thank him for telling you and let him know you realize that must have been very difficult. Second, offer your support and offer to work through this together.

The 30% interest is awful. Sit down with your budget and see where there’s room to make cuts together in order to pay that off more quickly.

Yes, a valance transfer is an option but

1. They charge a few percent just to move it over and

2. The original amount is still owed without any plan to pay it down quickly.

As for the 401K – last resort. Not only do you pay taxes on it but the penalty is steep & putting it back so you don’t lose decades of interest on it is difficult.

So, really the key here is tightening up the budget to priortize paying off that 30% interest card asap.

[Maren]

Try to avoid using retirement funds for anything other than retirement. Transfer to a 0% card and pay as much as possible as often as possible.

Cut up the cards.

Try to get extra jobs and cut back on everything else.

[Mindy]

Again, I’ll come in with a different angle. I hope you and your husband will address the actual problem going on regarding him just telling you now he has some debt.

Some frank and honest discussions should place about what happened.

[Watkins]

Have you verified what the debt is from? I’d make sure you do that first.

Mine had $35,000 in secret debt.. we did something similar to snowball method.

[Susie]

Never take out your 401k money. You will lose out on compound interest that you will never recover. He made the debt (without even telling you??), he should be responsible for paying back.

Transfer the one to the other like you said.

He can donate plasma and get a part time job or work ot to pay it back as quickly as possible. No more separate accounts or secrets, financial or otherwise.

You are suppose to be a team…. working TOGETHER not separately.

Good luck sweetie, I feel like you only know a small portion of the story/reason of the debt.

[Stacey]

Sure, you could do that. If your credit is still 620 or above you can get a personal loan at the bank pay off all the cards and have a 6-8% interest rate.

He would have to give up his credit cards if he can’t control them, or request a credit reduction to a safe range of $1000-2000

[Lane]

Usually with my experience, any 30% interest rate is for cash advances.
I would not pull from 401k.

I would transfer higher interest rate card to a promo card w 0%.

Get second job and put everything to pay-off debt that carries interest.

I would do some no-spend months. Visit food bank and eat at home. Budget every extra penny toward debt.

Then, build emergency fund for medical/auto maintenance/vet and, once that has $5k, build a sep reserve to take a vacation.

It’s important to treat yourself after mastering a goal like debt but not go into debt doing so.

I would, also, get marriage counsel from my preacher to learn how not to have secrets.

We are only as sick as our secrets, so it’s best not to have them:)
Good luck! You can do it!!!!

I got out of $15k medical debt 10 years ago and now I only use ccs to play the points game for travel. If I can do it, anyone can:)

[Ruth]

I agree with you that taking the money out of his 401 K is a bad idea. He will need that money for retirement.

[Melissa]

I don’t think it really matters what we suggest to you or what you suggest to him. He kept this debt a secret.

I am wondering if it really is medical, why you didn’t know about it, why he has a 30% interest rate on a credit card and did you know about this credit card debt.

Why are you not aware of your family finances. Why are both of you not taking classes in personal finance. Read a book get on utube.

I am wondering why he wants to take from your future income for a temporary fix when there are other ways to get more income. He can get a second job, do you work.

You not only have a financial problem you have a marital problem. You need more than money to fix this.

Sorry, tough love.

[Martin]

my family just spend down our 7 month emergency fund and think of going to taking 401k cashing in cause we have no income due to my health issues and my husband getting hurt on job

[Donna]

Taking money out of his 401k will cost you so much in taxes that it won’t be worth it. That’s not his debt it’s both of yours since you’re married.

Maybe since he finally told you, you can have more of an open dialogue now about things that affect you both.

You may be able to talk the the places where medical debt is owed and they will work with you and maybe even wipe some of it out.

For people below a certain income there are medical programs you can sign up for, for help paying medical bills, like Medicaid.

[Valery]

First off I am so sorry that you were betrayed. I know how this feels it happened to me too. The first thing we did was look at his finances.

We came up with a plan to transfer balances and pay down what we could. Then we did marriage counseling.

My husband was embarrassed and ashamed. It makes sense why he hid it but knowing that didn’t help.

What helped was complete transparency moving forward.

[Kayla]

Balance transfer to a 0% interest card as much as possible but make sure to pay it off during the terms for 0%.

Start with the 30% card as that obviously is costing more to carry a balance on

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