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    dagan22's Avatar
    dagan22 Posts: 1, Reputation: 1
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    #1

    Feb 10, 2008, 07:55 PM
    401k loan
    I have credit card debt and 2 loans I wanted to pay the credit card debt down and one of the two loans off the one loan has a $5,000 balance and I want to borrow $9,000.00 against my 401k. I have a plan once I do this to pay the 401k loan off in half the time. I though this would save me a lot of interest on the credit cards and the loan. PLEASE ADVISE!
    JBeaucaire's Avatar
    JBeaucaire Posts: 5,426, Reputation: 997
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    #2

    Feb 10, 2008, 09:36 PM
    Tough call. Read this page and it REALLY outlines all the stuff you need to consider:

    401khelpcenter.com - 401k Plan Loans and Withdrawals


    For me, even though I'm a professional, I would get a job delivering pizzas for six months to pay that... leave the 401k and my professional finances alone.

    And cut up the credit cards, of course. They are financial land mines. Debt is not a path to financial peace. Working harder and increasing income to pay for stuff, that's a plan. I used ths suggestion when my wife and I decided to get out of debt. We paid off $40,000 in two years and I'm sure you can accomplish the same thing.
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