OK i got a nice size check when i left my job.. 401k.. early?

Question

i know fincail ruin by doing so.. but i was in over my head and moving out of state no job and needed to cash in it to move.. i pay half of all my bills except for 3..acutally i paid 2 of them off. i got about 3000 dollars left.. and they are around 2000 dollars each.. should i do the same to them.. i have a trailer i am waiting to sell and then i can pay everyone off..i now have a job.. luckily i got one with in 2 days of moving here..on of them is chase and the fees keep going up .. what can i do to lower them.. if i called them and offered to pay them off it they delete the over the limit and late fees as i am 3 months late .. will they do that and would that be wiser because i want to cancel that card but keep the sears.. i am only around 200 late on it and 300 late on the american general

my credit is only trashed where chase is concern the other i was only late by a few days

Answer 1

You aren't in financial ruin by the early withdrawal.

Chase will not work with you to lower your interest or remove the fees since you are 3 months late.

And your credit is ruined...you're late on 3 different cards!

Answer 2

First, are you saying you cashed out your 401K? Did they withhold the penalty and taxes? If you didn't have those withheld, you will have a huge tax burden come tax time. Not only is there a 10% penalty for early withdrawal, but you have to pay income taxes and that lump sum will throw you into a higher bracket.

You might try calling the Chase card and offering a settlement of about 75% or 80% of the total owed. Be sure to get the agreement in writing before paying anything and don't give them access to your bank account. Since you plan on closing the account anyway and you have the lump sum, use it to your advantage. Since you are already 3 months late, you may as well hint that the alternative is for you to file bankruptcy.

Your credit is already trashed. You will take several years of on time payment history to ever get another loan or credit card.