Posted on: 29th Oct, 2009 06:18 pm
thinking about taking a 401 k loan due to drowning in credit card debt...should i do this
Hi mjgckg!
Welcome to forums!
You can check out the given page to know whether or not it would be a good idea to take a loan from your retirement account:
http://www.mortgagefit.com/401k-403b-loans.html
Sussane
Welcome to forums!
You can check out the given page to know whether or not it would be a good idea to take a loan from your retirement account:
http://www.mortgagefit.com/401k-403b-loans.html
Sussane
most suggest that such a loan is a bad idea...but then again, there's a lot of argument in the other direction as well.
It's a bad idea in that it inhibits growth of your retirement vehicle. But if you're drowning in credit card debt, it could be a good idea, but only if you're able to pay off the credit cards in full every month, after you've paid them off from your 401k. Your FICO score will get a tremendous boost also, so it'd be helpful from that perspective, in case you're considering purchasing or refinancing a home.
well said raymond...i guess if i'd had the time to think clearly about it, that's where i'd go with it. it's a matter of money management more than anything else. if someone can do this as a quick fix and then recover and make more contributions while keeping the credit card situation under control, then it's not a bad thing (for that person).