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 mjgckg01
Joined: 29 Oct 2009
Posts: 1
1.30 Dollars($)
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 Posted: Thu Oct 29, 2009 6:18 pm Post subject: Should I take a loan on my 401K? |
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| thinking about taking a 401 k loan due to drowning in credit card debt...should i do this |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Thu Oct 29, 2009 9:26 pm Post subject: |
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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 |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Fri Oct 30, 2009 2:31 pm Post subject: |
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most suggest that such a loan is a bad idea...but then again, there's a lot of argument in the other direction as well.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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raymond
Community Experts
Joined: 03 Jul 2009
Posts: 315
Location: Irvine, CA
60.39 Dollars($)
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| Posted: Sat Oct 31, 2009 11:19 am Post subject: |
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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.
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Raymond
www.ReverseMortgageCalculator.org |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Sat Oct 31, 2009 4:46 pm Post subject: |
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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).
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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