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Financial Discussion

It is always wise to have a secure financial foundation. Here is a place to ask questions, exchange ideas and share information on how to make the most of your money.


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John  
#1 Posted : Sunday, August 23, 2009 11:54:08 PM(UTC)
fedman53

Rank: Senior Member

Groups: Registered
Joined: 8/19/2009(UTC)
Posts: 265

I asked this question in another section and got a good answer, though not practical, in my mind. Was told to get a General Purpose TSP loan, but though debt would be paid/reduced, I will be replacing one set of payments with another (TSP loan), possibly still not out of a 'real' negative cash flow situation. Do I have any other options - appeals, etc?


I'm a CSRS employee (36 years), with a sizeable TSP account. My wife's job was downsized in 08 and she has been earning 75% less since. I discontinued TSP contributions at that time. Over the years, we have incurred debt, especially credit card and college loans (3 kids) based on two full salaries. She's also had medical issues, which have been covered by FEHB, but co-pays have eaten most extra cash. Now the credit card minimum payments have gone from 2%, to 3 - 5% a month and the interest rates increased to 25 - 30%, greatly increasing the minimum monthly payments. The credit limits have been reduced, limiting future purchases. I was researching a TSP In Service hardship withdrawal (as a last resort - I understand the costs involved). 'On paper' we don't meet the negative cash flow criteria because the worksheet, Item A percentage for ordinary monthly household expenses including CC, Charge accounts and interest, is too low for our income/family size compared to what we actually owe. When I run the numbers for worksheet item A, using 'real' household expense data, we have a significant, monthly negative cash flow. Do I have any other options within the TSP system.? (house is 'underwater', so no refinancing and trying to avoid the big B)
ChillinOut  
#2 Posted : Monday, August 24, 2009 12:22:57 AM(UTC)

Rank: Senior Member

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Joined: 4/10/2008(UTC)
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Was thanked: 1 time(s) in 1 post(s)
Delete.

[This message was edited by ChillinOut on October 27, 2009 at 11:16 AM.]
John  
#3 Posted : Monday, August 24, 2009 2:11:59 AM(UTC)
fedman53

Rank: Senior Member

Groups: Registered
Joined: 8/19/2009(UTC)
Posts: 265

3 and 1/2 years away from 59 1/2.
ChillinOut  
#4 Posted : Monday, August 24, 2009 2:54:20 AM(UTC)

Rank: Senior Member

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Posts: 952

Was thanked: 1 time(s) in 1 post(s)
Delete.

[This message was edited by ChillinOut on October 27, 2009 at 11:15 AM.]
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