My name is David, I’m a nurse from VA

I discovered MC Blog about 18 months ago. I’ve read TMMO, listen to his show almost everyday, but have not taken FPU.
Here’s my question:
Currenlty my only debt in addition to our home is my car loan. It’s $8600 with a rate of 4.9%. My employeer gives my the option of cashing in unused vacation time at 90% of our hourly rate. So my question…would it be worth cashing in about 100 hours to pitch at the car as a snowball? Or would I be losing 10% to save 4.9%?

Wow, I had a very similar situation with my son

I had to sue because of my son’s age. I had no choice. So you know who made money off that deal? My lawyer’s office. However, his staff did an excellent job. My health insurance paid for most, but because it went to lawsuit, they wanted their money back. Because the expenses were more than the lawsuit, they agreed to not pursuit any of the settlement, so that worked out.

So please, make sure the atty is pushing for them to (there’s a legal term for it, but I’m not sure what it is) not get their money. Of course they want their money back, but by the time your lawyer gets 1/3, there’s nothing left. As far as I know, my health insurance did not get reimbursed out of the settlement.

Sounds like it’s a done deal for you and your son. I hope he has no issues from this, and all is well. I opted to save his settlement for him until he is 25, instead of 18. I wish I could have held it back until he was 40!!!

So glad that your son is doing better

and I’m impressed that he is willing to get back on the bike and continue biking back and forth to school! Way to go young man!

Here is a story which was aired on our news station last night concerning negotiation of hospital bills. The man in the piece was bit by a snake. He is a reporter for the station and is of course, covered by insurance. The antivenin was $84,000 but see the negotiation tips which he employed to knock his bill down to something reasonable. If you need fast cash loans try RTLoans.com I was struck by the insistence of the people in the story to make it known that EVERY hospital fee is negotiable. They run on a suggested price list, and no price is set in stone.

Knowing this, or learning this, I would believe that it doesn’t matter what your salary is, or what finances you’re working with, like you, it would behoove the patient and/or their financial representative to negotiate price.

Here are some more facts to make things more clear and maybe it will help

I won’t be paying a penalty for taking the money as we can get around that because it is a hardship withdrawal due to total disability. So that is a non-issue.

Also, income taxes will be very low due to income not being what is was. ; )

If we own a home we will qualify for tax breaks on money spent for retrofitting and can qualify for grants for certain items for our home up to 80% of their cost. The more I look at this the better it looks. I am certain that the financial benefits of owning and qualifying for breaks will far outweigh any income tax burden placed on us by taking the 401k money.

Also, I have looked into the particulars today and think if this was a plan to go with that I could take a loan on the 401K at 2% interest for up to $20,000 and then only take $20,000 hardship withdrawal. Houses here are actually undervalued and this makes buying a good deal. This would cost me a lot less in income taxes and would have me paying myself back at a very low interest. I would have to play with the scenarios to see which on works in our favor.

Quite honestly I don’t have any real solution other than to buy a house. Renting isn’t something that can be done. It sounds good but in reality it doesn’t work. I wish it did, then I could just leave everything alone. I am really trying to think of reasonable workable solutions.

In short, if I take money from 401K to buy a house I will incur no penalties or taxes, I will own a house outright and I will be able to re-fund our 401K in less than 5 years.

If we don’t buy we will not be able to find a suitable home to rent and we will have to consider placing her in an institution. We would not own a home and would pay rent forever (or until we can buy again), but we would have an intact 401k although without any additional contributions.

When I put it down like this all I can see is that at the end of 5 years I will be in a much better place and we will be able to be a part of our daughters daily live if I take money from the 401k.

Does this all still sound crazy ? Before this all happened when we were working our steps and paying down our debt snowball following each and every step in order make sense to me and since Dave’s plan was working so wonderfully for us I really wanted to stay on track with the plan but I am having trouble now because of our unique circumstances.