Financial devastation due to cancer
My 54 y.o. friend received a devastating cancer diagnosis in Jan 2024. First round of chemo was not effective, but he was able to stay in his FT job of 11 years. In the summer, he was started on regular chemo & could not work. He was managing financially until Jan 2025 when all deductibles reset. Although he has just returned to work, he is about to lose his car (from defaulted title loan he took for medical expenses-car is 10 years old) and apartment eviction. He has worked diligently to find resources, to no avail. His credit rating was very good until this last year, but because of medical expenses, took a hit. He feels his only recourse is to quit a job he loves so he can access his 401K to pay his bills. Can you provide any other viable options? His family is not a resource. Because he has been unable to work for the previous 6 months, he cannot secure a loan from his credit union despite paying off previous loans early. Thank you for any help you can provide.
Terry Says
First step is to ask the company if they offer a “hardship withdrawal” from the plan, while he continues to work there. Many do.
Second step is to contact the medical providers and explain his situation and see if they will reduce his outstanding bills.
Third step is to contact the National Foundation for Credit Counseling at 800-388-2227 to get some professional help in contacting his creditors.
If he can still work, he should not quit his job. That will only compound his problems.
