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wobert069

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How bad is it to take a loan from your 401k to eliminate 50,000 of credit card debt

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Remember, if you aren't at the age requirement to take it out, you will have substantial fees to pay for taking it out, which could be more expensive for you than the interest in the long run.

Look into one line of personal credit, or a high limit card that has a 0% APR for balance transfers. Just make sure the non-introductory APR isn't through the roof! Alos, APRs arent always based off of our credit score anymore. The product you apply for is (i.e. Venture card from COF or Chase Saphire), but in the Important Disclosures before the Apply button is hit, after you enter all your information, you'll see your APR will be one of 3 APRs. Which of those three is based on your credit worthiness.

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You lose a lot towards retirement.

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Borrowing against a 401k may seem logical but you lose the interest that is being paid to build your retirement fund and history has shown most borrowers do not pay back the money anyways.   Best to leave the 401k as it is and, if your employer matches the funds you put in even partly, keep making contributions as high as the matching goes and work towards paying off the credit card debt by trimming unnecessary expenses, stopping use of the cards,  and living a little more simply.  The amount of debt you show is far too high because you are paying interest on it when the smartest tactic is to pay the balance off when the bill comes in.

As long as these are your bills (you are getting statements from the companies, right?) it is your responsibility to get them paid as quickly as possible. 

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