Anyone ever do a 401k loan to pay off cc debt? Trying to weigh pros and cons.

like
Posting as :
works at
You are currently posting as works at

Only do this if you are extremely confident that you will not be laid off and if the loan will be short term. Penalties for not making timely payments are massive.

I wouldn’t recommend a 401k loan for this purpose. You miss out on the appreciation of your assets in the 401k plan. The one pro of a 401k loan is that you pay interest back to yourself, not a bank. Depending on the plan, you may need to pay the full balance back if you leave your firm so make sure of that first.

When I first got out of school, I had a lot of cc debt. I ended up taking out a personal loan to consolidate the cc debt at a lower interest rate. This only works if you tear up the cc’s and don’t put new debt on them! Then, I paid down the personal loan at the lower rate. It also helped bc I had one bill to pay and keep track of.

Look for a personal loan through a credit union or online bank.

Refinance the debt through a personal loan or secured note

Pro: paying interest back to yourself, no credit check, maybe lower interest rate than personal loan.

Con: possibly selling low and buying high, if you lose your job you either pay in full or get taxed and penalized

Related Posts

As the job market recovers and tech talent becomes especially sought-after, some job seekers can be at a crossroads.

Fledgling startup or a big, established company: where would you work?

Working at a startup helps you pick up new cross-functional skills, forces you to dig deeper into your reserves, and allows leadership opportunities.

Big companies typically have a more structured path for career growth, offer benefits and perks to employees, and are perceived as more stable.

Thoughts?

like

I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept?
1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate
2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty

like

Hey all ! Need some guidance . I am planning to buy 2bd ,2ba in Atlanta near grant park , Inman park , reynoldstown , cabbage town , OFW area . Budget is 250,000 to 350000. It is more from investment purposes than anything else . Also my thinking is that buying place near belt-line will promise me better returns . First timer, on h1b and a female (single and no family ) if that helps . Need some guidance on my thought process and also referral on a real state agent

like

Does anyone know about the onsite policy of UST ? If an employee goes onsite does UST pay both indian and onsite salary ? Any other benefits that UST might provide like rental home etc ??

UST Global

like

Healthcare exit opps for $200k+ remote or hybrid (in Dallas)? 8 YOE. MBA Candidate

likefunny

Can we pay rent to our parent?
What if my parents are in other city and I am living @ my company's location which are 700km away from each other. Can I still show that I am paying rent to my parent?
Please help as this is my first time coming under tax slab

like

I have an offer from Capgemini.
Can anyone help me understand how is the Health Insurance Policy offered by Capgemini?
What is the coverage for immediate family and parents. Thanks in advance!

like

Debating when to have the first baby… would you say having a baby is totally worth it ? Worth all the struggles and sacrifices? Or should I wait an extra year just to save more money and enjoy life now without the extra sacrifices… (female 27 & want to have 2 kids)

Any one into San Diego real estate market. Moving from east coast and considering buying a family home but nothing decent is less than 1 mill and property prices have jumped like 15-20% in one year.

like

With the current exchange rates, a new analyst at certain firms in the us on USD110k earns approx GBP97.5k 😯😯 that’s more than a lot of b4 SMs in the Uk… when will we catch up even a little bit :(

like

Anyone from McKinsey’s Healthcare practice that would be willing to chat? Not looking for a referral per say, just interested in the work that goes on in the provider space. Many thanks in advance.

likehelpful

I have the chase sapphire preferred card for 12 months. Looking to get the CSR, but the application has a 24month wait after getting a bonus from other sapphire cards. Any known ways around this?

like

Can anyone recommend good investment options in Bank of America HSA account? I feel their funds are very limited compared to what I have seen from 401k and IRA. Anyone recommends your HSA account?

Are there any pros to staying at a company and getting laid off, vs. proactively looking for a new job and quitting before it happens? I.e., financial (possibility of receiving severance or any other benefits). Or is being laid off just all bad? I don’t know if my job is at risk — I don’t believe it is — but my agency lost some clients and is talking about cost cutting to be safe and get ahead of it. Fwiw, I’m ready for a change anyway.

like

For those of you that work from home, is there any salary or benefits that would convince you to return to the office full time? My job is trying it and receiving a ton of pushback regardless of what they offer people. My coworker is seriously considering leaving the company rather than start commuting again which seems crazy, but I really don't want to go back in either.

like

What is the UK salary for band C2 and what are the perks and benefits?

like

*Keeping an eye open for new opportunities*
I have my Bachelor's degree in Healthcare Administration along with 13 years of experience in healthcare. My experience ranges from medical coding, biller/AR specialist, patient financial advocate, and since 2019 my role is in the Quality department as a health care data analyst.

like

My recruiter told me I️ would be hired as an FTE after 3 months now they keep extending me month by month & the instability of not having health benefits makes me feel extremely anxious. I️ initially wasn’t interested in contract jobs but thought it would be a good opportunity for my career. Im thinking of sticking around but also debating looking for a new opportunity w/ more stability/clarity. Any advice? Open to anything, preferably a proposal/project coordinator role if anyone is hiring

like

Hoping to get my PHR in the next year or so. Outside of employer reimbursement, are there other opportunities for this to get funded? I know SHRM Foundation offers scholarships for the CP, but I am looking for PHR specific help. Thank you! :)

More Posts

Health insurance for parents is worst in JP Morgan. Coverage is low and premium is high on top of that 70% copayment. How are you guys handling your parents health insurance

like
like

Welcome to our Bowl! Please introduce yourself and post if you are open to mentoring others or if you are interested in matching with a mentor. We are actively growing this community and appreciate you sharing the bowl link with anyone you feel would benefit or can add value to the group.

likesmart

Anyone have three kids and working in big law? I just found out I’m pregnant with no. 3 and it’s been a lot trying to juggle morning sickness, but based on my experience, I know this is only the tip of the iceberg of what’s to come. My husband and I are elated, but the anxiety of being a mom of 3 kids and working in big law is preventing me from truly enjoying this news. It would be good to know what it’s really like having 3 kids so that I can evaluate how long I really have left in big law.

like

Hi Fishes,
My notice period is 3 months but companies do not call up again or further interview process after hearing this in my exp. Should I state the np as 2 months? Please advise.

like

Does PWC renegotiate based on other offer letters after sending out an initial offer letter?? Also does PWC entertain the request for a joining bonus?
Role offered-Associate
YOE-2. 2yrs
Tech stack-Frontend dev

like

Hi Fishes, Please help me with my dilemma. I have offers from 3 companies and getting 90% hike. Now current company is trying to retain with 40% and promising onsite. I have never been onsite and it's an aspiration since long. But the hike they're giving will also be effective after 6 months. Kindly help.

like

Has anyone heard about an offer for employment be rescinded because the background check showed a drivers license suspension 2 years ago due to a third party firm error not informing me on the results of the disputed ticket and requirement to pay ticket fees within specified time. The drivers license has since been in good order and is currently valid but the record shows a past suspension for a speeding ticket.

like

Hi Team,

To those that are working in BDM Strategic Partnerships world, what is the expected salary range?

I am based in California with around 3 years of BD experience.

I am looking to see if this is a career path I am interested in pursuing so any advice or insight is greatly appreciated.

Thank you!

like

Should immigration policies be modernized to 2022 needs? I believe in legal immigration, but I also believe it should be made easier for the people who are only working and giving back to our society. They're already here, might as well help them out.

like

Hi, I recently applied to a salesforce company and was selected for an interview. I had interviews with a recruiter, department manager and hiring manager and did well in them all. My final interview was with the CEO which lasted for about 10 minutes. He said he has read the notes from the previous interviews and the recruiter will get in touch with you. What are the chances I do not get this job given that I did well in all 3 interviews leading to the final interview with the CEO?

like

We transferred our embabies this morning. What a step. Watching these little eggs on the screnn made me appreciate science. I feel a bit crampy, is that normal? Or when does it considered abnormal?

Any other transfer Mamas? Or what do you do to occupy yourself?

likeuplifting

What are the best strategies to increase the followers of a LinkedIn company page?

like

What does it means to have product management experience?

like

Wishing everyone a happy and healthy holiday season—we know with difficult family situations, family holidays can be stressful for many LGBTQIA+ folks, so our best wishes and lots of love goes out to all of you here 💕

likeuplifting

Hi, I am currently working with Moody's Analytics India, with almost 3 YOE and CTC 13 Lkhs, and am currently looking to switch to PwC India, wanted to know how the hike is like and the quality of work. I have asked for a hike to around CTC 19 lkhs. PwCPwC India

Anyone here currently work or have previously worked at Sarah Cannon? I have questions about their career ladder/leadership structure.

like

Has anyone from PwC know yet if they’ve been promoted? When do they usually start telling you?

like

We have multiple SAP Hybris developer requirements at TCS. Let me know if anybody is interested.

likefunny

After 10 months of standing by my company while being underpaid, I’m looking to move on to an AE position at an agency in NYC with proper salaries. I’d love to work with non-profit or B2B clients.

like

Additional Posts in Personal Investment Chatter

Are there any ETFs for blockchain companies?

like

Can you transfer your stocks to someone else’s name if you’re working for a company with an independence clause?

like

Is it a good time to buy first home condo for 300k chicago downtown now? 45k in HYSA, 31 single. Rest of my money went into gifting home for parents and edu loan.renting for 1700 per month

likehelpful

If you kids are the beneficiaries on my will — can I put one of them as the primary executor as well ? I’m divorced btw

like

About to get a payout from a legal settlement ($300k-$500k). How would you invest it or what would you do with this money if you got a payout like this? My goal is to build exponential wealth, but would love everyone’s thoughts even if it has nothing to do with investing! (I’m 25, not married, no kids, have about $240k in student loans, and no savings)

like

What do you guys do when you like a mortgage provider but not the specific lender you spoke with? I have a lender that seemed rly immature and a bit rude but I like the company.

helpful

I’ve seen a couple posts lately with comments saying that people should not use a Roth 401k. Does the logic below capture the spirit of that concept?
1. Use trad. 401k to reduce taxable income now. Convert to trad. IRA once retired, then convert gradually to Roth IRA (ladder, SEPP, etc.) at lowest marginal tax rate
2. Use Roth IRA (and/or backdoor Roth) to take advantage of tax free growth and ability to withdraw principal early without penalty

like

Is watch a good investment vehicle in terms of resale value?

like

Is BRK-B a buy right now?

like

Can anyone recommend good investment options in Bank of America HSA account? I feel their funds are very limited compared to what I have seen from 401k and IRA. Anyone recommends your HSA account?

I’m a first time home buyer and trying to figure out how to get started. Any good resources you all have come across or tips in general? Specific question in comment below

like

Once I’ve maxed out my 401k and IRA accounts, where else can I do with my savings if I wanna continue investing in stocks? Feel like keeping a stash in a high yield savings acct isn’t the best rn.

like

Anyone else buying Series I bonds right now? What are the pros/cons?

like

New to investing. Looking for any/ all tips... book recommendations, YouTube videos on how to get started

like

Are folks buying homes with 6%+ mortgages? Or waiting till things cool down?

I’m a homeowner and we have a 3.25% on a $600k loan. Likely needing to upsize to a $1.5-2.0M home (VHCOL) because of kids, but balking at the idea of paying $6-8k/mo in interest charges alone.

like

Looking for recommendation - books, blogs, podcasts etc to learn about investment in stocks, bonds, options, commodities etc? TIA!

like

Do people use their HSA to actually pay for health expenses or just as a triple tax advantaged savings account for retirement? Seems like all talk on here emphasizes the tax benefits of it, so I am curious if people use to spend or just save

likehelpful

Moving to Dallas soon. Does it make sense to buy a condo or house even if I dont think I'll stay there for more than 3 years? I have family there that can help me if I decide to leave and rent this property. Any thoughts? Just dont want to keep paying someone else mortgage. Also want to take advantage of low interest rates.

like

Better alternatives to mint for understanding spending/spending categories over time?

like

If you were to attend a 1-2hr free financial seminar, what would you want to learn? I'm thinking of hosting a free financial literacy workshop that will actually make a budget and networth statement.

likeuplifting

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Send download link to your phone

OR

Scan your QR code to download
Fishbowl app on your mobile

By continuing you agree to Terms of Use and Privacy Policy.

Messaging rates may apply

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal