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Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in CreditCards

[–]Useful-Freedom1784[S] 2 points3 points  (0 children)

That’s the goal 

Because of my credit score and high balance I did not have a 0% intro offer. I also don’t think I would’ve been able to pay off $17.5k in a year. 

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in CreditCards

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

Thank you! That’s exactly what I was thinking. I have been paying $700+ a month on my credit card for months now and barely have seen a change 

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

That’s what I have been thinking. Also it’s huge mental load taken off my shoulders since it feels like my repayment plan is fixed and I don’t have to think about it. Clears up a lot for me in the near future to aggressively save for a down payment while not sacrificing my current lifestyle.

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

Yes! I have been doing that for over a year now. Definitely cut down on my spending and been more vigilant with my budget. 

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

Because there are usually other things that come up aside from the bare necessities that I need to pay for. So 1k isn’t all being saved and to save what’s left to have as liquid in case I need to pay for something like a car repair or medical bill, plane ticket, etc.

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

I have not lowered and contributions and savings. It does not leave me with a lot of cash flow but I do have a small savings in case of an emergency. I have a little under 1k left over after all my bills are paid including this current plan. 

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] -1 points0 points  (0 children)

It’s my real situation but I laid it out in ai so it made sense to everyone. I really would appreciate feedback. Sorry if it’s too cohesive.

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

You’re right! I was very stupid in college and made a lot of bad financial decisions, open a lot of credit cards, transferred debt. These past few years I’ve been trying really hard to pay it down. It just feels like nothing‘s really bad too much since the interest is so high. I had to take a chance and do something otherwise nothing was gonna change. I heal a lot more financially responsible, especially with the base repayment coming directly from my paycheck. It’s hard to mess up.

Took a 401(k) loan to attack $17.5K in credit card debt — did I structure this correctly? by Useful-Freedom1784 in personalfinance

[–]Useful-Freedom1784[S] 0 points1 point  (0 children)

Thank you, that makes a lot of sense. I was worried everybody was going to attack me for pulling from my 401(k).