Comments on: Reader Question: Is It A Good Idea To Get A 401k Loan To Pay Off Debt?

By: JOSH

JOSH — Sun, 15 Nov 2009 20:44:14 +0000

I just got laid off with a 8 thousand dollar loan from my 401 K.There is no way that I can repay this amount.There is a 10 thousand dollar balance on my account.What am I to do?

By: Karen

Karen — Sat, 04 Jul 2009 23:45:11 +0000

I have a $35,000 loan from my 401 account. The company just sold so I have until Dec 31, to pay it back in a lump sum or default. Do I try to get a home equity loan to pay it back or just cut my losses and move forward !!!!

By: lue

lue — Sun, 19 Apr 2009 18:37:19 +0000

i am retired on disability small monthly income so i starteding drawing on my 401k 5 years ago. was doing ok was drading 5% and making 12% now 401k is half of what it was and not making anthing.cant live on disability alone will 401 come back or will i run out of funsd first ah have to sell my house to live on. there 1,ooos of retired people who are in trouble and will have to sell everything just to live. the goverment gave away peoples money who worked for it and gave it to people who wont but can work. once you start drawing ssi inflation catches up with you a cost o living raise doesn’t help much. my neighbor gets 545 a month if her kids didnt help she couldnt live. some people in there 20’s draw 1,000 plus nevered worked old woman worked 40 years got $390 27 years ago plus her husband deawed $400 amonth after her husband died she only gets her ss where is our bail out death

By: Mark Ward

Mark Ward — Mon, 02 Mar 2009 15:55:10 +0000

- The money is essentially taxed twice

Unless you can take out a home-equity loan and use it as an itimized deduction, this is not correct. You’ll still be repaying the loan with after tax dollars and you’re just replacing money that would have been taxed at retirement anyway.

By: Cammy

Cammy — Thu, 25 Dec 2008 04:26:31 +0000

Thanks for the great tips.

By: Mark

Mark — Wed, 10 Dec 2008 23:02:42 +0000

So, if my 401K is giving me a return of -12% and the remainder of my auto loan is 8.9%, why not pay off the loan with my 401K in 12 months?

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