Worried, we had to borrow from DH's 401k

**Buckeye5** · 10-26-2008, 10:57 AM

Unfortunately, Murphy has kicked our butts big time recently and we are all out of the EF, we have about $600 left in it, but will be getting back to the higher amount in the next month. However, with that being said, we had to pay cash for a new transmission, hot water tank, tires, other car repairs, the week w/out electric because of Hurricane in Ohio, (which, cost us a bit of $$) With the furnace we had to take a small $4000 loan from our 401k. We are sick about this, but felt we had no other choice. I don't think we will ever be able to retire years on down the road. I am tired of Murphy. We just cannot seem to get ahead . Has anyone else ever done this, I know it is a trrible thing to do, but we need heat for the winter. It is an emergency.

**jamie79** · 10-26-2008, 11:14 AM

We have never borrowed from our retirement acct but I know your pain. Hang in there. Things will get better

**nodmicks** · 10-26-2008, 11:51 AM

I'm so sorry! Hang in there! What doesn't kill us only makes us stronger!

**Cricketlegs** · 10-26-2008, 01:00 PM

I have borrowed--STILL paying that booger back!

We have also cashed in--oh my word the TAXES you pay.

Neither is a good idea BUT given the alternative a loan is something that at least you pay yourself back on.

NEVER EVER EVER cash one in--stupid tax plus taxes to the IRS= dumb stupid and did I mention DUMB?

**Michelle68** · 10-26-2008, 01:02 PM

That is a bummer. Sometimes everything just seems to happen at once. Sending you big hugs.

--Michelle

**staciah** · 10-26-2008, 01:12 PM

We also borrowed $5000 a few years ago. We were able to pay it back this year with our tax money.

We will have to put our house on the market here soon and I am so afraid we will be losing our shirts on the sale. If that happens, I don't know where we are going to come up with a down payment for a new house. I don't want to have to borrow anymore against it.

**khjmom** · 10-26-2008, 02:45 PM

We have been there...it was either borrow from the 401k or not be able to have a roof over our heads. Our youngest had unbelievable medical bills and prescription costs that we had no choice but to pay, which in turn took money away from utilities and rent. We were in waiting mode for goverment help, SSI and medicaid, due to my dh having insurance thru his job and I wasn't able to work because of him. (13 week preemie that had everything go wrong) Once the help started arriving, we were able to eventually double our payments toward the loan. We never stopped having it taken out of my dh's paycheck either because of his company matching what we contributed. Thankfully we were able to repay it quickly. I have to also add this was also when we had no clue about emergency funds and thought that nothing bad could ever hapen to us. Murphy showed us real quick how stupid that was.

**larabelle** · 10-26-2008, 02:49 PM

Sometimes you have to do what you have to do!! Sending you a hug...hang in there!!

**Persimmon Lace** · 10-26-2008, 05:31 PM

You do what you have to, to keep going and if that means borrowing or cashing out a 401k you do it. If we were to get to the place of losing our house it would be gone, period. At least my home is tangible.

**frugalbabe** · 10-27-2008, 12:57 AM

First of all huge hugs! Second, have you looked into any city programs you may have? Our city has a program where we can buy home appliances (have to be energy star compliant) and we can pay for them through our utility bill monthly with no interest added. We bought our refrigerator this way when our old one died and once that was paid off we bought digital thermostats. So you are still paying for them but it is in easier chunks and of course with no interest added. Just a thought! I really hope Murphy loses directions to your house and never finds it again!

**my4littlebuffaloes** · 10-29-2008, 06:43 PM

You have been hit hard! We have had years like that and it seems we will never recover, but we muddle through and you will too. You have to have heat, it was either borrow from the 401k or a credit card right? You did what you had to do, so now just work hard to pay it back. You can do it! And you have replaced so much that what else could break right?

**debmar** · 10-29-2008, 07:14 PM

Somebody else already said it - you do what you have to do. I borrowed from mine last March thinking no problem and then I got laid off this summer. I wasn't able to pay it back and just received the form for my taxes - so know I will get to pay the IRS and the state of Oregon.

**staceyy** · 10-29-2008, 10:12 PM

Be glad you have a 401k to borrow from. Some people have no such recourse!!!

**fixer** · 10-30-2008, 04:15 PM

The important thing is that you did not want to borrow from the 401k. This shows you are on the right path. Most people see all of their assets as a bank to be drawn from at will. Keep fighting, it will get better!!