401k
Date: Fri, 03/11/2011 - 06:52
I am so close to paying off all of my debt I can smell it. I have one credit card from forever and a day ago that keeps tacking on fees, etc. for overlimit and I can't seem to get it down. I just don't have the extra money currently. Has anyone ever borrowed from their 401k and would it be smart for me to do this.
If you're paying high fees and interest, borrowing from your 401
If you're paying high fees and interest, borrowing from your 401K is probably a good idea. You'll have a much lower interest rate and you're paying yourself back with interest.
I borrowed from my pension fund (just like a 401k) at 5% interes
I borrowed from my pension fund (just like a 401k) at 5% interest to pay my credit card settlements. I am now debt-free except for that and I can sleep at night. If you are over 59-1/2 you can make a withdrawal from your 401k without penalty.
