In short, I've whittled my credit card debt down to $15k (I know it's pathetic that I had to whittle it down to that amount, but I had almost $30k at one point!). I've gotten on a budget and I'm making progress and I have my emergency fund in place. I've had a good job with higher income for the last year and don't foresee that changing any time soon. The reason I initially went into debt no longer exists.
I've accrued $6k in my 401k and am able to take out a loan for up to $2,300 @ 6.5% interest with a $35 maintenance/setup fee.
I'm considering doing this to put it against the credit card debt, which has a similar interest fee, but since it's a heavier balance obviously I end up paying more.
Just looking for guidance on why this may or may not be a wise decision? If I choose a 6 month payback, it would only be taking out ~$140 from my paycheck, which is virtually identical to the interest charges I've been getting hit with on my CC lately.
However, I wanted to make sure I'm not missing any hidden catch...
Thanks!
Submitted February 07, 2019 at 06:44AM by paulrudder http://bit.ly/2ULbVTi
