r/debtfreeliving

Hey all,

I've been frugal and responsible for almost all of my adult life.. I recently went through a rough patch in life (mentally, work, stuff), snapped mentally, and went on a spending binge for a month or two, eating out, shopping and doing things I've almost never got to do.

Dust settled and got my s**t together...... now sitting on almost $3k of cc debt. First week of June is the first due date and I don't even have $200 in my bank account to pay for it. First time I've ever experienced this, I'm done beating myself up for it. I have $$ tied up in a 401k and other retirement accounts. Aside from paying the minimum balance ($40).. what else can I possibly do? I'm afraid of the high interest rates skyrocketing my balance. Do I take the 10% early withdrawal penalty from my retirement accounts to pay off my cc?

Any advice would be appreciated!

Looking to acquire rual property on cash basis (no mortgage) small house trailer. Is this possible? Maybe a tax sale?

I’m 24 $14,000 in credit card debt making 28$ a hour and I had originally moved back in with my parents to save money after several injury’s at work but I’m just paying most of their bills now. The only thing keeping me from moving out is high minimum credit card payments

My parents are giving me holy hell about pulling from my 401k as a non taxed loan to pay my debts off at 7.5% interest ( which will be payed back into my 401k )
vs 28% interest to the bank

The 401k loan will be taken out of my check each week ($86) then on top of that just save up enough money with working overtime to make a one time payment to finish the loan off

Am I making a mistake?