Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: MplsSteve
If this woman has a 401K and can borrow against it, I recommend that she take out a loan and pay off the cards. The interest rate charged (on the loan) is significantly lower.

I've done this before, too. I ended up regretting it.

As someone else pointed out, the typical response is to simply run up the credit card debt again. That's not what happened to me, though.

My money was sitting on the sidelines during one of the biggest growth period in the US Market. As a result, my current balance is significantly lower.

Of course, you may end up taking profits and paying a nominal interest rate (which goes into your own account) while the market tanks, as well. But in the long run, it's usually not a good idea.

15 posted on 01/04/2012 8:30:17 AM PST by justlurking (The only remedy for a bad guy with a gun is a good WOMAN (Sgt. Kimberly Munley) with a gun)
[ Post Reply | Private Reply | To 4 | View Replies ]


To: justlurking

“The interest rate charged (on the loan) is significantly lower.”

If the job ends for any reason, the full amount comes due immediately.

Never borrow from family. They go from being a family member to a creditor. You can destroy a relationship like that.

Take one card (usually the smallest) and throw all your money at that card, making minimums on the rest. If you can, get a loan from a bank or credit union to pay them off so you only deal with one payment. Then kill the accounts. Dead.

But first comes the budget. You have to know where your money is going.


18 posted on 01/04/2012 8:35:40 AM PST by AppyPappy (If you really want to annoy someone, point out something obvious that they are trying hard to ignore)
[ Post Reply | Private Reply | To 15 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson