Financial question

Okay, for all of you finance people and other peoples in the know, I have a dilemma and would like some advice.

I'm on the verge of quitting my job. I can't stand my job anymore. Also, I've learned about as much as I possibly can and there's nowhere for me to advance.

I'm also thinking about quitting without having another job lined up. I have my resume on careerbuilder and have applied to jobs but haven't heard anything. I've temped before and that's what the plan is, if I quit. I'm going to take Monday off of work and make some appointments to talk to a couple of agencies around me.

My dilemma is this: I took out a 401K loan to pay off some debt. I'm slowly paying it back, but it won't be paid off until 2015. If I quit my job, I'll have to pay back what I owe within 60 days or I risk paying a penalty at tax time.

My options:

Forget about paying it back and pay taxes on it next year.

Take out a personal loan just for that amount and pay it off before I leave.

Take out a personal loan for the remainder of my 401K loan AND my one credit card that I have a balance on that will take forever for me to pay off. The balance is high. :-(

What should I do? I'm starting to have stress attacks when I pull up at my job because I f*ing hate my job that much. I can't stay here. I can't. I need to move on from this place. So staying here isn't an option for me anymore.

 

The penalty is an additional 10% tax. So if you borrowed 4000 your penalty will be $400. Don't forget the amount of the loan will also be added income too so if you make $50,000 then with the loan you will be have $54,000 in income. But you are more concerned with the penalty right?

It could be worth your while to get a loan and pay back the 401K loan and not pay the penalty but you have to do the math. Without the loan being secure you may drown in interest and paying the income tax and penalty on the 401K loan may look better.

 

I agree with JC, slightly. Getting the 401K loan paid should be first. However, if you get a loan for a high amount interest may kill you (that's where I agree). Personally I think you should have a job in hand before you quit. What if you get the loan and dont find a job?? Your credit report will stink. Then you will have added unwanted problems. The credit card, you can make payment arrangements. Making debt to pay dept just doesn't seem to be the correct route. IMO. Try to stomach your job until something comes along. Just my 3 cents.

 

before acting on emotion...seek for a job first and when you land it then quit. employers like to hire people already employed...see article

http://www.utsandiego.com/news/2012/apr/13/ca-bill-would-make-it-illegal-require-employment-j/

 

Bookie, I agree with everyone here....please don't quit before you find something else....there are so few jobs out there and all we hear is how hard it is for so many trying to find decent work....I do agree with you to take a day off and go look, sometimes just taking a mental health day once in a while will help you get through the tough times til you find a better job....!
Hang in there girlie.....

 

Bookie I don't understand your taxes and loans...but what I understand is that you are on the way to walk on a slight frozen lake.The point is, if you don't find a job, soon, what's going to happen? Are you really prepared for that? It's not that it wouldn't be possible, I am self-employed since I was 21- but it's risky and definitly not easy. There will be several times, when you don't know anymore what to do..To be stressed by your job is one thing, to discuss with bankers so that you don't lose your property, trying to find a job and searching for money to have something to eat - and all that at the same time...that is really stress.....

Good luck, decide wisely!!

 

I agree with Christine also, here in Oz we offer free advice in situations of your kind. (Well the first appointment is free, but as a consultant for over 7 years,,,, I was always happy to help people in your situation. ).

Even just a general chat with your banker could help. If he or she is nice enough they could work out some figures for you to let you know the best path to take financially.

 

Thank you for all of the thoughtful answers everyone. You've definitely given me things to ponder.

I've been wanting to quit my job really badly for a few months now, but haven't because of the economy and the difficulty in finding a job. However, there are always two sides to every coin.

Sometimes you just have to take a leap of faith and know that no matter what, things will work out in the end. As a Facebook friend put as his status today:

The critical ingredient is getting off your butt and doing something. It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.

There is some truth to that....it's not quite the same idea, but the message is there. And then he had this as a comment on this status:

Yes, people gotta stop waiting for things to be perfect and just take some action….it’s better to take steps down the wrong path than to wait your whole life for a perfect path, and never take a step!

Sometimes you just have to take a deep breath and take a plunge.

I'm still wrestling with the idea. It's not a decision to be taken lightly for sure.

Thanks everyone!!

 

you can look for a job while you have one. its better to do that because you arent ass out if you dont find one soon.

see article below...........

http://money.cnn.com/2010/06/16/news/economy/unemployed_need_not_apply/index.htm

 

Bookie, I replied to this twice and lost my post both times!

Just wanted to add something - which you may have already considered. If you quit your job, you will not be eligible for unemployment. And, while temping is a great idea and I'm glad I did when I was laid off (kept me employed and I eventually got a full-time position that way), you could go weeks without pay if they have nothing available for you. Are you prepared for that?

Like most everyone else, I would strongly encourage you to find another job before quitting this one. I was in your shoes at one point (cried all the way to work every day and spent the first 10 minutes in the bathroom). But I managed to hang in there until I secured another position.

I hope things work out in the best way possible for you.

 

Yep, which is why I haven't gotten to the point yet where I will quit. I'm seriously considering it and am trying to come up with every worst case scenario possible to seek out a solution.

I did just update my careerbuilder.com resume. My official job title at my current job is "Engineering Administrator" and Careerbuilder kept sending me jobs like Engineer, Systems Analyst, etc. I just support the Engineering department, as I don't have an Engineering degree. So, I changed my resume to read just Administrator, made the first line to read that I support the Engineering department, uploaded the revised resume and changed my job title on my profile.

I also just added everything to my LinkedIn profile, changed my job title with that one (LinkedIn sent me similar jobs) and fleshed out my profile on there and even added a photo! :smt023

 

Good luck in your search. Hang in there. A crappy job can be better than no job/no paycheck.

 

Thank you!

I agree with you to an extent...sometimes your life needs a shake-up though.