Update

Things have become very busy for me lately, with no breather in sight. I don't want to stop answering your questions but I have to find a balance here. So here is what I'm going to do, questions that are sent will be selected to be answered on my MoneyHelp radio show. You can listen to the show online.

And Now For Your Questions That Were Answered on MoneyHelp Radio Show #29

Kathryn Asks…

Hello, my husband and I are pushing 50. Right now our 401K savings and my IRA total $160K. We have a 6 year old and I've not been working for the past 6 years, taking care of her (aka no income, no additions to SS or IRA/401K). My husband's job is VERY stressful and he wants to make a change to downsize his stress level but possibly also his pay. He has asked me to cash in my IRA (he will do the same when/if he changes jobs) so that we can pay off our mortgage and car loans and be debt free for the next 20 years (except for utilities, repairs, etc.) My IRA alone would pay off our mortgage and one car loan.

MY QUESTION: Is this a good idea? Can you think of any reason NOT to do this? Some unforeseeable event in the future that we'd need that money for? He will still be contributing to some sort of savings plan at a future job although likely something less risky--my 401K lost lots of value during the last "crash" and is only now back up to where it was before. He doesn't wish to take that risk again. And I'm wrestling with the idea of going to school to either continue my college education or train for a vocational position. Still I would only have 15-20 more years in the work force to contribute to another 401K.

I know I've given you a lot of history here but I'm really confused as to the right thing to do. Thanks for your listening and help,

Kathryn

Steve and Linda Ask…

Hi, The wife and I filed bankruptcy a few years back so we cant do it again and of course we received all the wonderful credit card offer now we are up to our ears in debt.

We are both handicapped now and just making it on our disability checks. We live in a 27ft 35yr old travel trailer my dad gave me and we drive a 12 yr old van. I have been just letting all the cards go back, there is no way we can make the payments and live and I could care less about my credit with our health. We could never buy a house or a car...and all the accounts are just unsecured credit cards so I don't know what they could do. They cant touch the house or car here in Florida and there is nothing to take. I'm 54 and she is 60..just figured with our health the heck with it. I have had 14 surgeries and she has probably had ten. And there just is no money, both of our checks together don't even come to just about 12,000 a year and that is for the two of us. Just wanted your opinion.!

Thank you very much.

Maria Asks…

Hello, I am going through a divorce, I have about 3 credit cards, one individual loan one of the credit cards I owe is 2000.00, and the other ones are smaller. Also I have an individual loan in the amount of 1,500.00, it is all under my name. What is best way to pay them all? Should I start with the smallest one? I need help.

Debbie Asks…

Before I ask my question I would like to tell you how much I admire your web site. My husband is the big "finance" person but now I've turned him on to your site. Thank you for the advise and help you give others. It is truly inspiring.

Now for my question:

I became ill in 1996 and while at work in Dec. of 1998 I became critically ill and close to death. During the next 2 years I began treatment for a rare disease that caused me to be out of my mind most of the time. I am ashamed to say that during a month period I might pay one of my credit card bills, not pay another and paid one twice a month. My husband thought because he saw the individual envelopes I was paying my bills on time and the proper amount. I had always had really good credit but during this period I really messed it up! I had a total of 3 credit cards. When I "woke up" I realized what a mess I had. I tried going thru a credit counseling service but the credit cards I had would not decrease my payment or interest. Because of this and my 1000.00 out of pocket expense a month I had to pay for my medicines it got worse. I was even told by one credit card co. to not buy my medicines and pay them. I was faced with a very difficult decision and even tried t! o wean myself off my meds so I could pay them. This ended in a disaster because it threw me into an Addisoian crisis which means a hospital stay. Also during this time the accounts were sold so those people started calling and sending mail.

I have never been able to go back to work and have been labeled disabled (which I hate because I loved to work and be with people). Oh please let me add I was paying one of the companies a regular payment which I allowed them to take directly out of my checking account so I wouldn't mess that up when I would have an episode of extreme illness, which still occurs up to this date. The company sold the account and stopped accepting my payment. I had to start dealing anew with the co. the account was sold to and they refused to accept the amount of payment I had been making.

I have tried to work out payment plans that I can afford to pay but they refuse to take less than they want me to pay. Can you advise me on anything I can do? Thank you so much for your time and help.

Your Money Coach For Comfortable Success,^sm