46,000 in credit card debt - the interest is over 20%
Date: Fri, 09/05/2008 - 09:19
I have a 401K in excess of 92,000. I understand that I can apply to secure a loan from my 401k. This is a painful process so I am told. I am horrified. But I can't take the debt either. Medical bills, education and the mere to rob Peter to pay Paul. These people are calling my home at all hours. Will a bank give me a loan and use my 401k as collateral? I look for your reply.
No, a 401(k) cannot be used as collertal in the typical loan. N
No, a 401(k) cannot be used as collertal in the typical loan. No bank will do it.
Some 401(k)'s allow you to borrow against your account. You will need to contact your HR dept or whoever is managing this benefit (like Fidelity). You borrow against your account and payments are made back to your account (plus interest).
Submitted by desperatelyseekingsanity on Fri, 09/05/2008 - 10:13
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