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Borrowing from 401K..Good or Bad?
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Posted by netshound (My Page) on Sat, Jul 8, 06 at 20:13
| What are your thoughts on borrowing from your 401K plan? Is it good or bad? |
Follow-Up Postings:
RE: Borrowing from 401K..Good or Bad?
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| It's good because you are "borrowing" your own money. I think the interest rate was about 5 or 6 % compared to 15 to 22 % on credit cards. I owed $15 thousand on credit cards, shame on me. I borrowed against my 401k but was very strict about paying it back. I paid it all back within two years. So for me it was "good". It is nice to see my account is back "whole" again. I don't plan to borrow against it ever again. I learned my lesson! |
RE: Borrowing from 401K..Good or Bad?
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| It is a good thing. I borrowed from my 401K plan for a down payment on a house. Our interest rate was Prime + 1%. You're paying yourself back, not a bank. |
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