Ask Terry Questions credit debt

credit debt

By Terry Savage on April 16, 2024 | Credit/Debt

My wife and I have ~44,000 in high interest credit debt (>26% rate) with interest charges >$1,1oo per month (and my monthly pmts on these are $2397/mo). I can take a loan out from my 401 at 9%, for 5 years, pay these off, ($913/mo) and in the process, pay myself instead of the credit companies. The extra can pay in full any other credit bills month. As I’m I 66, if I retired or have to stop working for some reason, there is no penalty as balance would just roll over to a distribution. What is your opinion, and thank you!

Terry Says

I think you should get some specific advice from the National Foundation for Credit Counseling — read this

If you haven’t learned how to manage your spending, you’ll soon be back in the same situation– with NO retirement assets!! You’re not ‘paying yourself” with this plan!
It may actually have a lower rate, but it doesn’t deal with the big picture!



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