I need your advice.. kind of a shit situation. Headed for divorce and can’t afford everything on my own. I thought abt pulling $60k from 401k to pay for everything (bills, etc) so I can afford rent and living on my own.. question is would let your credit go or save it and take a hit from a 401k draw? Thanks all!

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I’ve been in that tough spot…. Starting over after a divorce and up to my eyeballs in debt. I was making less than 40k at the time and felt like I was a financial failure AND and personal failure .

The best advice I can give you is to read The Total Money Makeover, by Dave Ramsey. Amazon, eBay or Local library will likely all have it.

His philosophy for getting out of debt and becoming financially independent works for many people in your situation.

That said, following his plan, I paid off all my debt in about 3-years (except the mortgage), put a kid through college, and I’m now a multi-millionaire - on paper.

Stay strong, my friend. I’m rooting for you.

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Reading about your story…. gives me hope!

Sheesh. Both tough options. If you feel that you can successfully build your credit back up fairly quickly and survive with it low for a while, I might choose that over drawing from the 401k.

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You’ve got to be able to survive.. but I personally would try to stay away from pulling $ out of the 401k

See if bankruptcy can pull from your 401k. I didn’t think they could from IRA

IRA and 401k are both creditor protected from bankruptcy.

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If it’s with your current employer see is a loan is an option. Otherwise there are taxes and penalties

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