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Tag Archives: 401k loan

How to Borrow From a 401k in a Make Sense Way

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Borrowing from a 401k is a major decision. It is important you make certain considerations before borrowing from your 401k, so that your loan doesn’t negatively impact your retirement. The key aspect to borrowing from a 401k vs withdrawing from one, is you won’t have to pay taxes or penalties unless you default on your loan or in some circumstances ... Read More »

    Here’s Why a 401(k) Loan to Pay Off Debt Can Cost You a Massive Amount in Retirement

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    Over the years I’ve been asked time and time again about if a 401(k) loan is a good idea to take out to pay off debt. I typically say the same thing, in most cases it makes no sense to touch the money in the 401(k) that is protected from creditors if you can qualify for a chapter 7 bankruptcy. ... Read More »

      Our House Is Not Fit to Live In. Should We Borrow From 401K? – Connie

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      “Dear Steve, My daughter in law bought a house in 2004 before she married my son. Her name is the only one on the deed. She bought the house with the understanding that the house was new, only to find out afterward that court records show that the owner had gotten a remodel home loan of $10,000 and had sold ... Read More »

        We Make Good Money But What’s The Best Way to Get Rid of Our Debt? – Carol

        “Dear Damon, My husband and I have faced a significant and unfortunate legal situation over the last three years that not only had us feeling totally wronged but has messed up our finances in a big way. Because all of our money aside from housing and food was paying attorneys, we put a lot more than we should on credit ... Read More »

          401(k) Loans Rising to Make Ends Meet. Spells Big Future Trouble for Consumers.

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          The bad news is out, more people are raiding their 401(k)s for cash to address current financial needs. While the ability to reach into a 401(k) might be perceived as a good thing, after all isn’t it our own money, it’s not. When you steal from your 401(k) you are really taking money from your 81 year old self who ... Read More »

            Boyfriend Cheats Me Out Of Money To Feed His Debt Habit

            Photo Credit: crnewbedford

            I’d like to follow up with my previous article, How Do You Value Your Quality of Life? Debt Solutions to Fix The Future In this article I showcased a friend of mine, Michael. I should point out that Michael was much more than a friend to me, we had been in a very serious relationship for a year and a ... Read More »

              How Do You Value Your Quality of Life? Debt Solutions to Fix The Future

              Photo Credit: Cayusa

              Debt doesn’t just affect the people actually in debt, it often affects the ones around them, near and dear to them. I know this from first hand experience as someone who has loved and lived with someone so deep in debt they could not see a way out. Not only is the emotional toll hard on the debtor but also ... Read More »

                I Am Current on My Bills But Have Really Nothing Left. – Sheilah

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                Sheilah “Dear Steve, We make good money. Have 5 credit cards totalling $73,500. Already have a loan out on my 401K. I’ve got a child going off to college in two years. Creditors are now increasing my interest rate (they say across the board) because my credit rating is less than 719. I am so stressed I won’t what to ... Read More »

                  I Borrowed From My 401K to Pay Debt and It Made Things Worse. – Anita

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                  Anita “Dear Steve, My husband is self employed and has been so for 23 years. A year and a half ago, he was doing a large commercial job, and the people went bankrupt and basically screwed us out of $75,000. At the same time, another client took us for $10,000. Obviously, this was a whole year’s salary for us and ... Read More »

                    I’m Divorced and Can’t Dig Myself Out of Debt. – Rich

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                    “Dear Steve, Divorced last summer. Split credit card debt. No assets besides my vehicle, and I rent an apt so don’t have any home equity to work with. Now have $32000 in CC debt, highest rate is 7.9%, total $751 in monthly payments. Also have $23000 401k Loan at 4.5% (takes 215 out of check every 2 weeks) but this ... Read More »

                      Is There Any Hope For Me to Get Out of Debt? – Kenneth

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                      Kenneth “Dear Steve, I changed jobs last year and had to take my 401k distibution because I had to pay off a loan that I had taken out on that 401K.They charged me the penalty and took taxes out, but I found out this year that I still owed a little over $3000 in additional taxes. The new job layed ... Read More »

                        I Am a 53 Year Old Pilot With a Side Small Business in a Lot of Debt. – Rich

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                        “Dear Steve, I’m a 53 year old pilot making 85K/ yr. I also own a small business that I invested heavily in hoping to start reaping profits by now. Instead, I’m now in debt for about 40K in outstanding business expenses with about additional 25K in credit card debt and 18K unsecured loan. I loaned my Dad 9K before the ... Read More »

                          I Saw You Sugegsted LendingClub to Someone. Should I Try That? – Renee

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                          “Dear Steve, I am a divorced single mom of 2 pre-teens, work full-time, I am a homeowner and I have no savings. My problem is this: After paying for the mortgage, utilities, insurance and bills, I have very little left to live on. This has resulted in my using credit cards as a “back up” – and I need to ... Read More »

                            How Can I Convince Creditors to Work With Us Rather Than Force Us Into Bankruptcy? – Penny

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                            “Dear Steve, My husband was injured in car crash 8.5 years ago, injury caused him to find work out of town (2 hours away), settlement went toward replacement vehicle. while fuel prices were so high we made ends meet by using credit cards, we are working at getting things paid off, but late payment fees, over limit fees, etc. have ... Read More »

                              Should I Payoff My Credit Cards With a HELOC or a 401(k) Loan? – David

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                              “Dear Steve, I have 2 high interest credit cards I want to eliminate quickly.I am considering obtaining a HELOC at 4.25% vs borrowing from one of my 401-k and repaying it at 6.25%. Do you have advice on which should be the preferred solution or do you have a better idea? David”   Dear David, Leave the 401(k) alone. The ... Read More »

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