I have $20,000 in credit card debt that I can’t seem to pay down. I have cut up my credit cards and are no longer using them. My interest rates are 8-12%. I am considering taking a loan on my 403B at 4.25% that I pay back to myself. One of the downs falls is if I’m layed off, then I have to pay loan in full or it’s considered default and taxed. I do have a stable job and don’t expect to be layed off (but don’t we all). My loan would be for 4 years. And I can borrow the 20,000. I have over $60,000 in my retirement account and I am in my 30′s.
Your Question Is it dumb to take a loan from my 403B to pay of credit cards? the loan is set up so I pay myself back the interest.
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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.Is It Dumb to Take a Loan From My 403(b) Retirement Account to Pay Off Debt? - Maura by Steve Rhode