Using 401K loan to pay off credit card debt?
Saturday, October 31st, 2009 at
2:34 am
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “Using 401K loan to pay off credit card debt?”.
Tagged with: credit card debt • Credit Debt • interest rate • Pitfalls • Visa Debt
Filed under: Free Money Saving Tips Debt Relief
Like this post? Subscribe to my RSS feed and get loads more!
It is rarely a excellent thought to take money out of your 401k.
"But I’ll be paying myself back with interest" you say.
Hogwash. If something happens and you quit or get fired before it is paid back, you will be constrained to pay it back immediately or suffer the fees and penalties associated with a 401k withdrawal.
Why not just lower or suspend your 401k contributions and throw that money at the credit cards?