I am single and have one income. I live in Denver and the rents have gotten crazy here. My rent is now the same as one out of my two bring-home paychecks in a month. I have great credit. I have 25K in credit card debt and 3 grand in medical debt because of cancer treatment. I do not know when the medical bills will stop due to this type of condition. I have been a federal employee for 18 years. I have a negative cash flow every month because I am suffocating trying to pay the minimum payments and everyone has their hand out.
I only have 88K in my 401k. I want to move to another state and buy a house there where the cost of living is not so high and get a fixed rate because the rents here increase 200 a month every renewal.
Trying to pay the credit cards off is no longer seeming possible because half my payments are interest. I am no longer using them, but they are not going down.
Because of my health condition, I would like to take a position in another state , closer to my family and that has a better cost of living than Colorado. I want to have a house built there. It takes 6 months. I am considering doing a hardship withdrawal for these reasons:
- I figure I will need 6 grand to have an extra 1k a month for 6 months in addition to my full-time income from my full time job just to pay minimum payments on all medical and credit card debts and living costs.
- 2 grand for moving across many states
- 1K to cover deposits, application to apply at apartment in the new state until the house is built
- 3K in earnest money to sign a contract on a house in new state
- 9K I borrowed from friends because my cash flow is negative
- $2900 to vacate my lease early - that is their penalty
I only bring home about 2800- 3000 a month. That is my net. I am on a special diet due to the health condition and take special vitamins, organic produce, etc.
I was fine and had no credit card debt until 5 years ago. Everything got very expensive, especially housing.
I would love to just take out a loan or even a residential loan from my 401K, but that would lower my income substantially to where I don't think I could pay a mortgage. I am 51 years old. Please don't ask me why I have not bought a house before now. I have always wanted to move to another state. Close to my family and less expensive and then I got into cc debt when houses and rents and medical expenses came along. I have a major cash flow problem. I have never been late for any payment at any time my entire life and all my good credit seems to have been for nothing - at my age.