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Skylily4ever

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Desperately need a solution
I'm struggling with paying bills right now. My husband got sent to a mental facility last year for almost 2 months, then again for another 2 weeks. I got a job, but it's not been enough to keep everything afloat. Whenever my husband misses work it puts us back even farther. We pulled a loan out of his 401k last year to help pay bills, so we can't pull another one out until March. Our credit is in the low 400s. We maxed out our credit cards trying to pay bills, and now we're behind on payments with those. All because we lost his income and he racked up a ton of medical bills. I'm positive once taxes come in in February, that we can pay everything off and get caught up, then be able to start putting money up. But until then, things are just getting worse because we can't find enough money for everything at once, which causes late fees. I've always been good at managing money but I can't figure a way out of this one. I don't want to file Bankruptcy, and we tried going through our credit union for a loan but they couldn't approve one. I even thought of an advance tax return loan, but was advised against it. Even just an extra $1000 would help catch things up enough to start working on things until our tax return in a couple of months. But with such a low score, we can't get a loan ANYWHERE. I just need suggestions?

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Eliminate the idea of getting a loan or further credit extended, your credit is too poor at this time and the rates would be too high to help if you found a lender that would issue you a loan. Make a list of the things that are absolutely necessary and whatever money you have there first. You need a roof over your head, utilities on and food. Contact any creditors that you have and explain your hardship and see if there is anything that they can do to work with you to keep things going for a while. Regarding the medical bills, see if there are any programs in your state or with private entities that may be able to help. Check with the medical facility where the care was provided, they may have programs. Look around for things that you don't use that you can sell. Downsize where you can and pick up any extra work that you can. More importantly than all, have faith that things will all work out one way or another.

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Your priorities right now need to be basic survival (housing, utilities, food and transportation) and communication with creditors because they can be quite helpful when they know what is going on.
Do not touch the 401k any more.  Most who borrow are not able to pay it back and you do need it for retirement. 

Calculate your basic living expenses and see what you may have available to pay bills.  I suggest doing a search for Dave Ramsey and follow his guide for paying debts when income is low.  He does have some sensible ideas.

And, don't panic. Things WILL work out.  I've been there so know this advice is true.

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