Should I get a 401 K loan or Home Equity loan
I owe about $ 25,000 on various credit cards with interest ranging from 17 % to 30 %. I am barely able to make the minimum payments. In addition, I owe $14,000 ($ 500 a month) on the car with 7 % and 3 years to go.
Because I have bad credit, I was able to get one bank to offer me a Home Equity loan for 20 years and 13.8 %. I also have about $ 70,000 in my 401 K. Should I take a $ 25,000 from the 401 K to pay it over 5 years? Or get the home equity with 13.8 %?
Thanks,
Ashraf
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