Are You Borrowing From a 401k to Pay Off Credit Card Debt?
Are you thinking of using a 401k loan to help pay off your credit card debt, or already doing so? A 401k loan can be a helpful way for you to access cash now to help you with financial difficulties, but it can also be a risky and unwise way to sabotage your financial plans if not done carefully. If you are thinking about getting a 401k loan, read this to help you decide if it is right for you. If you have already taken out a 401k loan, this article can also help you figure out how to manage that loan while exploring other options to help you with your credit card debt. A 401k loan has many attractive features. The basic concept is that you take out a loan guaranteed by the balance of your 401k account, or taken directly from your 401k account, and pay back the loan like any other loan arrangement. By borrowing your own money, the lender takes on less risk, meaning you get a lower interest rate than a traditional loan option, and you can get the loan with different credit qualifications
