How Do You Use 401K Money To Pay Off Debt?
More people today are looking at their 401(k) money as a way to get out of debt. They figure the money is just sitting there in an account and their debts are growing larger. Thoughts of retirement money are overshadowed by immediate debt and financial issues. Deciding to withdraw 401(k) money to pay off debt is a personal issue. Some will advise against it, while others who have done it will encourage it. By knowing all of the facts, only you can decide if a 401(k) loan is right for you. Read the 401(k) plan description that you have with your employer. Some plans allow for loans to be taken on the 401(k) account, while others do not. Different plans will require that you have a certain amount paid in, or that the plan has been in force for a certain number of years. Make sure you qualify for a loan. Borrow only as much as you need. Total the amount of debt that you want to pay off. Your plan will state how much per pay will be deducted to repay yourself for this loan. Remember that t
