unsecured debt consolidation loans rates
Tuesday, March 9th, 2010
Should I pay my 401k loan with an unsecured loan debt consolidation, with almost the same speed?
My plan is a 401K Loan fixed payment plan, pay no more nor less. I owe about $ 19K w / 8% int. (loan) with 6 years or more to bear fruit. loan consolidation debt is 8.99% for 5 years. Ofcourse one caveat is if I miss just 1 payment rate can be set as high as 27.99! Gotta go w / deductions AutoPay. Doing this will give me more of net pay, but is it worth?
Given your choice, I prefer to keep the 401 (k) loan. I would cram as much as possible in a savings account to repay the 401 (k) as soon as I could. If a balance transfer to a regular credit card is an option it sounds better than either of your options for me.