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I took out a 401K loan also and now I am looking to change jobs in 4 months. I have $2300 at 8%. So I have to pay off the loan before changing jobs to avoid the penalties and fees. I would like t speed up the payments because they are quarterly. My goal is to pay off Providian at $1400 in the next 2 months then attack the 401 K loan

Slovell,

At the point where you change jobs, the loan becomes due. And if they are like my 401k people, they won't send you anything to tell you that you can pay it off (which you can in one lump sum before you leave). They will just wait a month or two and send you a statement telling you that you are in default and now owe taxes, and there is no longer an opportunity to pay it off. Even if you are planning to transfer it to an IRA, the loan needs to be paid off or you owe the taxes and penalties on it. Like I said, I learned that the hard (expensive) way, so I am just trying to save you the pain that I went through.
And paying off Providian is sure an excellent idea. I know it is the wrong commercial, but I have that vision of the viking guys on horses coming to raid the house (with interest rates).
Sounds like you have good plans. Very cool.

Beth

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