Time to Take Control
I made a decision yesterday about this whole financial mess. If I can, I'm going to get a personal loan to pay it. I just want to be done with it. I need to be in control of the mess rather than it controlling my every waking moment. With the personal loan, yes, it won't be done as I will have a chunk from my income going to pay the loan back, but at least I will know where the situation stands at all times. And really, I've known from day one that I'll be the one having to pay. As the old saying goes, "you can't get blood from a turnip," the turnip being my husband, and since his job situation is still what it was over a year ago, logic dictates the one with the income will be the one who will have to pay. That's me.
For over a year, I allowed my husband to "handle" this issue since it really was his doings that put us in the position we're in. I wanted to believe he would take care of it. His way of taking care of it has been to remain unemployed and working to have the total due reduced. He's convinced he'll be shown pity because of his unemployment status and heart attack in January. That's all well and good, but again, logic dictates that if one person in the equation does have an income, and if that person also has a savings, then that person will be tapped to pay what's owed. Per the usual, my husband continues to live in La La Land. I prefer to live in the real world when it comes to financial issues, so I'm taking the situation into my own hands.
Initially I thought about taking the money from my personal IRA. I called the company I have my account with and talked to a financial rep about doing so. He was wonderful. He walked me through the penalties and taxes that would be applied, and in the end, draining the IRA turned out to be an awful idea. I'd be losing 42% of what's in the account to penalties and taxes. Absolutely crazy. Part of me doesn't understand why the tax rate would be as high as it is as the money that I'm putting into the IRA comes from what I net after my paycheck has been taxed. Most of the money in the account is what I have contributed. Just seems like money that has already been taxed is being taxed again. What this is really showing is I need to take a class on IRAs and how income is taxed.
During our conversation, the rep suggested I get a personal loan or a credit card. He talked me through the interest rates that each would have, and he talked me through how each would help me keep my credit score intact as long as I stayed the course and made the payments on time. In the end, either one of these would be a much better choice than taking out my IRA. Since I am very anti credit cards (I do have one for emergencies only), I decided to go the personal loan route. I went to my bank and talked to a loan officer. Now I'm waiting to see if I will be approved.
While I'm not happy at all about having a chunk of my income going towards this mess, I know it will only be for a short time. I know me -- I'll throw every last bit of money I have towards the loan to get it paid off, my goal being to pay it off in two years. I'll not have much "play" money during these two years, but that's okay. Maybe this is exactly what I need to help me finish a project I'm currently working on. With no extra money to play or travel with, I'll be forced to use my time to work on the project, which is all at once fun, exciting, and challenging.
Now I'm just waiting to hear either the yes or no on the loan. If it is a yes, the funds will be available immediately. If I'm declined, I'll have to figure out another option. Either way, I'm going to take control of this situation. It's way past time I do so.
For over a year, I allowed my husband to "handle" this issue since it really was his doings that put us in the position we're in. I wanted to believe he would take care of it. His way of taking care of it has been to remain unemployed and working to have the total due reduced. He's convinced he'll be shown pity because of his unemployment status and heart attack in January. That's all well and good, but again, logic dictates that if one person in the equation does have an income, and if that person also has a savings, then that person will be tapped to pay what's owed. Per the usual, my husband continues to live in La La Land. I prefer to live in the real world when it comes to financial issues, so I'm taking the situation into my own hands.
Initially I thought about taking the money from my personal IRA. I called the company I have my account with and talked to a financial rep about doing so. He was wonderful. He walked me through the penalties and taxes that would be applied, and in the end, draining the IRA turned out to be an awful idea. I'd be losing 42% of what's in the account to penalties and taxes. Absolutely crazy. Part of me doesn't understand why the tax rate would be as high as it is as the money that I'm putting into the IRA comes from what I net after my paycheck has been taxed. Most of the money in the account is what I have contributed. Just seems like money that has already been taxed is being taxed again. What this is really showing is I need to take a class on IRAs and how income is taxed.
During our conversation, the rep suggested I get a personal loan or a credit card. He talked me through the interest rates that each would have, and he talked me through how each would help me keep my credit score intact as long as I stayed the course and made the payments on time. In the end, either one of these would be a much better choice than taking out my IRA. Since I am very anti credit cards (I do have one for emergencies only), I decided to go the personal loan route. I went to my bank and talked to a loan officer. Now I'm waiting to see if I will be approved.
While I'm not happy at all about having a chunk of my income going towards this mess, I know it will only be for a short time. I know me -- I'll throw every last bit of money I have towards the loan to get it paid off, my goal being to pay it off in two years. I'll not have much "play" money during these two years, but that's okay. Maybe this is exactly what I need to help me finish a project I'm currently working on. With no extra money to play or travel with, I'll be forced to use my time to work on the project, which is all at once fun, exciting, and challenging.
Now I'm just waiting to hear either the yes or no on the loan. If it is a yes, the funds will be available immediately. If I'm declined, I'll have to figure out another option. Either way, I'm going to take control of this situation. It's way past time I do so.
Comments