No. of Recommendations: 0
Some of you know my current situation. I am 25 and like most Americans am in debt. As of three months ago I was in debt 25,000 now I am down to 12000. I want to be out of debt by April 1,2000. I can probably get their by then , by paying what I pay now.

My Question to all the Fools out there is this...

I have an option to take a loan out of my 401k from work for 6000, with an interest rate of 8.5%. The two credit cards that I still owe. 3000 to citibank at 21.9% and my credit union at 13.9% for 9000. I can pay the loan off either over 6 months upto 60 months. I can pay it off in 6 months without a problem. It just comes out of my paycheck automatically anyhow. So i wont really care. i was thinking about paying it off over 12 months, that way it only takes out about 130 a week. But, I have the option to pay it off whenever I want. For example in two months instead of 12 with no penalty.

I have been with BEL for over tree years now and put 20% a week into my 401k with them matching 80% so i have a lot in there now.

What do you think I should do?
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.