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?
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