When making ‘extra’ debt payments, be sure that you understand the ‘policies and procedures’ that your creditors have implemented. Call your creditors and ask – 1. If I send in a payment amount that is ‘above’ my ‘minimum payment’ – how will that payment be handled? This is a very important question. Certain creditors will ‘hold’ any amount that is…
Category: Debt Reduction
Questions And Answers About Debt Reduction – Should I Cash Out My 401(k) To Pay Off Debt
Should I Cash Out My 401(k) To Pay Off Debt? Under most circumstances, if you cash out your 401(k), you will have to pay federal, state, and local income tax. You will also owe an early withdrawal penalty – 10% – if you are under the age of 59 1/2. In almost every case, for every $100 dollars you withdraw,…
Breaking The Cycle Of Borrowing Money And Paying Interest
For the first fifteen years of my adult life, I borrowed money for every major purchase. Three years ago, I decided to stop borrowing money and get out of debt. As you can imagine, going from a ‘borrower’ to a ‘non-borrower’ (Is that a word?) can be a difficult process. Here’s how I did it – 1. I created two…