I need to pay off $19K in CC debt. I haven’t charged anything in YEARS and I'm still paying $550+ a month and I'm tired of it. I would like to either withdraw from my 401k or take out a personal loan.
(I am currently trying to refinance my students loan, by July. I’m not sure if getting a personal loan will hurt or help me.)
401K ROUTE: I know that withdrawing from my 401k is a bad idea and that I need to save for retirement. However, I need to get rid of my CC debt. To lessen the tax load, I would like to withdraw about $2k-$5k a year, and pay off one card each year.
PERSONAL LOAN ROUTE: I am open to getting a personal loan to pay off my CC debt, if the interest rate is low, and payments are lower than what I pay now.
Here’s my financial picture:
28 yrs, no kids, not married but have a boyfriend, who I do not live with. Credit Score is maybe 650? (No missed payments or negative remark, just high CC balance %)
Income/Assets:
- $44,880/year
- Income after tax, insurance, and 401k: $631.80 a week.
- Savings: $350 (had a lot more but just paid income taxes and car taxes)
401k:
$2,344.93 (increases every week). (Only giving $17.18 a week, and company matches. At this time, I cannot afford to give more and take full advantage of my company match. Hope to do so in the future.)
Cash Spending:
- Rent & Utilities: every single thing housing related is under $700/month. This includes rent, water, internet, gas and power. Sometimes it's only $680/ month. This amount will decrease when I move in with my boyfriend, in June
- Budget: $10/day for eating out, $18/week for gas, and $30/week for Groceries (I usually don’t spend all of this.) Misc. expenses come from what is rolled over from the week, after bills. I usually have about $50-$100 extra each week. Some goes into savings or additional CC payments
Debt:
- Car: $217/month, Balance $11,171.50, 6.95% (I know, horrible rate. Will be paid off in 5 years.)
- Sallie Mae Student Loans: $1,000/month for 2 loans: $70,509.15 & $21,623.94 @8.875%. Loan term is only 12 years and they are currently deferred until July. I need to refinance! I cannot afford these payments. Need it cut in half at least and/or loan term doubled!)
- Navient Student Loans: $48/month, Balance $3,664.22, 9.35%
CC debt:
- BoA: $100.month, Balance $3,143.08, 24.49%
- Cap1: $35/month, Balance $1,270.55, 21.30%
- Chase: $118/month, Balance $4,575.63, 17.49%
- Citibank: $70/month, Balance $2,264.15, 23.49%
- Barclays: $130/month, Balance $4,727.69, 20.49%
- LAFCU: $62/month, Balance $2,035.31, 8.49%
- AMEX: $35/month, Balance $1,384.31, 16.74%
With that being said: Take from 401k or get a personal loan? Will getting a personal loan hurt my chances of student loan refinancing?
THANK YOU FOR READING!
Submitted May 04, 2018 at 10:17AM by djrainbowpixie https://ift.tt/2HR5Ez7
