Read more: Local, Economy
The theme our panel of financial planners heard on Monday evening, was worry about debt and inability to pay back.
Several viewers say they're carrying credit card debt that they cannot pay back--others are either losing jobs or worrying about unemployment, with big bills looming.
Our advisors were unanimous in suggesting a budget to work from, and getting credit counseling if feeling overwhelmed, or unable to pay back. Some callers asked about negotiating 'forgiveness' on credit card debt, and the website bankrate.com is a tool to compare different cards' interest rates as a bargaining tool.
One strategy for paying back is to concentrate on the card with the smallest balance, pay that off, then use the same abount to apply to the next biggest debt, and so on. Bankruptcy, a last resort, should only be considered with the assistance of an attorney because of its major legal and credit implications.
There were also concerns about 401Ks and IRAs: losing a job may mean the end of eligibility. The advice: roll it over into another account, possibly consolidating plans from several employers. Cashing out, especially under age 591/2, will mean the money's taxable. And, if there's a loan from a 401k that's cashed out, that amount will be counted as taxable as well.
Our financial advisors are back on the phones next Monday from 5 - 6:30pm. You can also email your questions to money@wstm.com
