Comments on: Reader Question: 401(k) Loan to Pay Off Credit Card? http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/ Talking about money, without being boring. Sat, 05 Jul 2008 10:08:22 +0000 http://wordpress.org/?v=2.5.1 By: Robert http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52177 Robert Fri, 30 May 2008 13:03:46 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52177 Thanks Stephanie...I did transfer part of my expensive loan to a 6 percent loan....but of course there was the 3% fee on top of that.... Thanks for the info on Prosper Loans...I will look at that more tonight when I come home from work. Best Regards, Robert Thanks Stephanie…I did transfer part of my expensive loan to a 6 percent loan….but of course there was the 3% fee on top of that….

Thanks for the info on Prosper Loans…I will look at that more tonight when I come home from work.

Best Regards,
Robert

]]> By: Stephanie http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52080 Stephanie Thu, 29 May 2008 01:18:21 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52080 @Robert Have you looked at trying to get a credit card with a 0% APR intro rate? Not to spend more, but just to transfer the balance. Failing that, have you looked at <a href="http://poorerthanyou.com/2007/06/16/get-paid-for-turning-your-friends-into-loan-sharks-or-debtors/">Prosper Loans</a> at all? @Robert

Have you looked at trying to get a credit card with a 0% APR intro rate? Not to spend more, but just to transfer the balance. Failing that, have you looked at Prosper Loans at all?

]]> By: Robert http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52077 Robert Thu, 29 May 2008 00:49:02 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-52077 I'm in that situation now...I first consolidated all my credit card debt with a 16% loan.....It kills me ever month to see the interest I pay to these companies...I feel my only option is taking a 401K loan as expensive as it is...banks keep me in the poor house......I feel I will not reload the cards and I will live as much as I can without CC's. I really want out debt is the biggest stressor in my life.....I want it to end.....thanks for the forum.... I’m in that situation now…I first consolidated all my credit card debt with a 16% loan…..It kills me ever month to see the interest I pay to these companies…I feel my only option is taking a 401K loan as expensive as it is…banks keep me in the poor house……I feel I will not reload the cards and I will live as much as I can without CC’s. I really want out debt is the biggest stressor in my life…..I want it to end…..thanks for the forum….

]]> By: Nick http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-51494 Nick Wed, 21 May 2008 06:04:35 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-51494 Taking out a 401k loan to pay unsecured debt is always a bad idea, because 1) you are securing your debt, and 2) now you don't have as high of a balance-to-credit limit ratio, so your credit score goes up, you end up with additional credit cards/limits, and you end up spending the money on the same credit cards again anyway. So now you effectively doubled how much you owe....never mind what happens if you lose your job/default on your 401k. Taking out a 401k loan to pay unsecured debt is always a bad idea, because 1) you are securing your debt, and 2) now you don’t have as high of a balance-to-credit limit ratio, so your credit score goes up, you end up with additional credit cards/limits, and you end up spending the money on the same credit cards again anyway. So now you effectively doubled how much you owe….never mind what happens if you lose your job/default on your 401k.

]]> By: First Time Mortgages http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-51280 First Time Mortgages Sun, 18 May 2008 11:36:05 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-51280 Finding 0% APR cards is my preffered way to initially handle debts. Plus you can move around fromo lender to lender after the introductory period, which can be up to 6 months. You can literally save youself a 'bundle' with just this one method. Finding 0% APR cards is my preffered way to initially handle debts. Plus you can move around fromo lender to lender after the introductory period, which can be up to 6 months. You can literally save youself a ‘bundle’ with just this one method.

]]> By: Janni http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-49486 Janni Wed, 30 Apr 2008 01:59:00 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-49486 If you take money out of your 401k to pay off your debts, you may regret it later. Taking out a loan or an early withdrawal will reduce your eventual retirement account and may force you to work longer. If you take money out of your 401k to pay off your debts, you may regret it later. Taking out a loan or an early withdrawal will reduce your eventual retirement account and may force you to work longer.

]]> By: Jane Doe http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-49396 Jane Doe Mon, 28 Apr 2008 16:55:44 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-49396 It would be better to just cut off your expenses, I am sure that in 90% ot the time this can be done. Try earning more, if not. It would be better to just cut off your expenses, I am sure that in 90% ot the time this can be done. Try earning more, if not.

]]> By: Stephanie http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46169 Stephanie Sat, 01 Mar 2008 22:41:20 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46169 @Valerie: A Prosper loan is a loan through the person-to-person lending service, Prosper. There's a link in the entry that explains a bit more about the service. @Valerie: A Prosper loan is a loan through the person-to-person lending service, Prosper. There’s a link in the entry that explains a bit more about the service.

]]> By: Valerie http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46108 Valerie Sat, 01 Mar 2008 02:23:17 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46108 What is a Prosper Loan? Never heard this term before. Thank you. What is a Prosper Loan? Never heard this term before. Thank you.

]]> By: Jamie http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46074 Jamie Fri, 29 Feb 2008 13:33:38 +0000 http://poorerthanyou.com/2007/03/20/reader-question-401k-loan-to-pay-off-credit-card/#comment-46074 I think taking a low interest loan from your 401 k is an great idea, if you cut the credit cards up. Paying back the 401k you choose the time in which to pay back and its automatically deducted from your paycheck. Good luck. I think taking a low interest loan from your 401 k is an great idea, if you cut the credit cards up. Paying back the 401k you choose the time in which to pay back and its automatically deducted from your paycheck. Good luck.

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