Quote:
Originally Posted by Bizzymammabee  A good way to pay down debt and save yourself money would be to borrow from your 401k if you are not too close to retirement. It's a good way to get the funds, pay it back at a lower interest rate and the biggest plus is that the interest goes to you and not a credit card company. I used from mine to do put in my new kitchen and install hardwood floors throught out my house. There are no penalties for taking a loan from your 401k.
I love the fact that I am in debt to myself only and every single penny of interest goes into my account.
I wouldn't do the debt consolidation because I dont' like paying a fee to anyone. My mom did it once with this very well known company that does that sort of stuff and they were messing up her credit on their own by making the payments late. You can also call your current credit cards and as long as your not late or delinquent and a good payer you can ask about getting a lower rate on your cards. That is what I just did on the ones that I had that were empty.
Life after credit cards takes getting used to. You can also do a big chunk payment by budgeting things out of your income tax returns.
Good luck...I know how it is to feel caught up in the cycle of credit card debts. |
yea but you have to remember with a 401k you get nailed with taxes at the end of the year too... i just did......