I’m a frequent poster but created a new profile for this question.
My DD was in a horrible accident last year and despite having good insurance, the bills have really piled up. My DH missed 2 months of work while she was in the hospital and I am a SAHM. We have never had credit card debt in our lives but now have about $30k in credit card and medical bills. I can’t go back to work as DD needs a significant amount of rehab. We have cut corners wherever we can but we need to do something to get this debt under control.
I am thinking we should take out a home equity loan. Our house is worth about 750k and we have good credit. DH is considering whether we should cash in some retirement funds (we’ve saved a lot for retirement) but most is qualified $$ so tax ramifications would be terrible. Any suggestions on getting this debt under control? I am constantly losing sleep over this as we’ve never been in this situation. We had a pretty large safety net for emergencies but that has dried up due to alll of her bills.
ETA: Little more info- we have no car payments and have about $550k in equity in our home. We also have quite a bit saved in college funds (about 300k) for our 3 kids and college is about 2 years out for the first one).
My DD was in a horrible accident last year and despite having good insurance, the bills have really piled up. My DH missed 2 months of work while she was in the hospital and I am a SAHM. We have never had credit card debt in our lives but now have about $30k in credit card and medical bills. I can’t go back to work as DD needs a significant amount of rehab. We have cut corners wherever we can but we need to do something to get this debt under control.
I am thinking we should take out a home equity loan. Our house is worth about 750k and we have good credit. DH is considering whether we should cash in some retirement funds (we’ve saved a lot for retirement) but most is qualified $$ so tax ramifications would be terrible. Any suggestions on getting this debt under control? I am constantly losing sleep over this as we’ve never been in this situation. We had a pretty large safety net for emergencies but that has dried up due to alll of her bills.
ETA: Little more info- we have no car payments and have about $550k in equity in our home. We also have quite a bit saved in college funds (about 300k) for our 3 kids and college is about 2 years out for the first one).
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