Should I cash out 401k to elimate unsecured debt?
Date: Fri, 02/15/2008 - 09:59
I have 30,000 in unsecured debt. I'm barely making minimum payments. I have a 401k that I can cash out which, after tax and penalties would eradicate this debt. I would appreciate any thoughts or suggestions.
How old are you? Do you have time to build up another descent 40
How old are you? Do you have time to build up another descent 401K? If so, this may be an option. You may also want to check out the option that volleyball said, see if you can take a loan out against the 401k.
No loan
As this 401 is from a past employer, it's not available for loans. I'm 48 and do have time to build up again (hopefully!) and logically if the credit card debt is paid off, I will be able to bump up contributions to 401k.