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Is it ever a good idea to cash out a small 401k to pay off CC debt? I am starting a new 401k in April when my new employer offers it (my one year anniversary) and I would have enough after the cashing out the old one to pay off about 1/3 of my debt. Is it worth it? I have about 5.6k in CC debt paying off 1k this month and I have 3.2k in the old 401k, I'm 22 if that matters. I also plan on paying about 100-300/month of the CC debt after the intial payments depending on much I can work my second job these next few months.
DenialTwist fucked around with this message at 02:58 on Feb 3, 2010 |
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Feb 3, 2010 02:56
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| # ¿ Apr 27, 2024 19:54 |
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Thanks, the main reason I was looking at cashing out the 401k to payoff my debt is so I could begin to accumulate some cash savings as I currently have none and would like to pay cash for my next big purchase (a car; mine is 10). So at 22, would starting all over again be a terrible thing with the 401k; my plan is tentatively-1. Start hacking away at debt as fast as possible 2. When the debt goes down to one card (about 2k) cash out the 401k to pay it off and start sticking that 200 a month into cash savings so I can pay cash for a new car when I need one.
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Feb 3, 2010 15:18
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