Should I Use a 401(k) Loan to Pay Off My Credit Card Debt?
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- Опубліковано 15 сер 2021
- Should I Use a 401(k) Loan to Pay Off My Credit Card Debt?
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Nope. Paying 24% because you don’t want to loose a 10-12% return on your investment is completely crazy to me. You’re paying yourself back 5%, and saving 14% interest which is a gain of 17%.
Don’t forget the loss from using post tax dollars to pay it back, which get taxed again when you eventually withdraw.
@@kenmurray25 that’s not at all how a 401k loan works.
I unequivocally disagree. This really depends on how old someone is and how much debt. Being buried in debt and not making any headway year after year. Taking out a 401k loan or cashing out CAN be a way out. It's not for everyone though. I did it in my 30s and don't regret it. Sometimes the cycle of debt has to be broken first. It depends on a person's mindset.
Same, I did it in order to put a down payment on my first house years ago. I don't regret it one bit either. Not for everyone though, I agree.
You are right!🦅
@odseus preach!! 👍🏼👍🏼👍🏼
I sort of agree. In the 20s and 30s to just take a small loan under 10 k is ok to do in my opinion. But I'm broke and trying to get through like I assume the rest of us watching the content so maybe don't listen to me 😂😂😂
I’m 25 need 4000 worked at my job for a year have double that in my 401k rn it can’t really hurt me to do it does it
I paid off all of my credit cards with a 401k loan several years ago. I then canceled all the cards and paid my loan back over 4 years. I’m so glad I did it. No more credit card debt and no 401k loan. Better to lose 5-7 percent than pay 25 percent to a credit card company.
Compounding interest baby! More money sooner is always better!
I think the point is really that when some people take out loans against the 401k, they start being frivolous. If you can control yourself and be smart, 401k loan can pick you up out of really sticky situations. But if you haven’t even taken the first baby steps then don’t even think about it.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@TerriVess However, if you do not have access to a professional like JUDITH ANN PEACE, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
@@Lourd-Bab Oh please I’d love that. Thanks!
@@TerriVess Judith Ann peace is her name
Lookup with her name on the webpage.
I have been pondering this and am so happy it has posted....
Especially. Beware..401 k loans have strings attatched.
I think Dave's face in the thumbnail is my exact reaction
DR, please tell people you can round numbers off lol. You don't have to give the exact amount, especially if its $.05 under something lol.
Dave is 100% wrong here. On paper you will have a higher net worth if you take the 401k loan.
Dave: How long have you been listening to this show? 👀🥴😆
🤣🤣🤣
Caller: Proceeds with a 2 minute answer.
Hahahaaha we (the old listeners) all know why.
Why not get 401k loan and pay that off in a year save about 2k
Callers, stop asking Dave how he's doing, please. 🥺
He’s doing better than he deserves, in case you didn’t know.
I did one time and promises myself to never do it again.
Thank you thank you thank you!!!
Dave: “How long have you been listening to the show?”
Caller: 👁👄👁 *Gives long indirect answer*
haven't you guys heard ?
Owe Mastercard vs IRS 🤔
Pay off the IRS ASAP! They can mess you up!
Happy to see Rachel on with Dave; she is great!
HMU 🤙 @kevintuner he can help you with whatever dumps+pin approver for loans and other stuff all though the dark web
I'm gonna say no
I love this.
Put the bible down and get a job... how come Dave didn't tell her to start delivering pizzas? Rice and beans, baby, rice and beans.
🥴😆😂😂😂
His a hypocrite that's why.
The only time you get to see inside of a church is if you work there and get paid.
Save Cerro Gordo
Ouch...24% interest and $51K income. The hole is filling with water as you climb out.
HMU 🤙 @kevintuner he can help you with whatever dumps+pin approver for loans and other stuff all though the dark web
EXACTLY!🦅
And they could be out tomorrow if they just took the 401k loan. It’s apparent that the dude just started working there a short time ago. It won’t affect the big picture much when they could just pay that loan back in 6 months without the stress .
People that treat 401k as an emergency fund are financially illiterate. Why you have an emergency fund on the side.
David Ramsey is a good idea for undisciplined people with little income. Very similar to John Maxwell on leadership.
51k / year, and he thinks they will pay it back in 1 year?! That's 3.5k / month take home. Let's assume 1k for home+tax+insurance. (Obviously incredibly generous). That's 2.5k for all other living expenses and he thinks they can put ~800/month on a CC? Is it just me or does that seem like bad math?
He also didn't break down a single number. Just explained this like a evangelical preacher...
Also also. I feel like the opportunity cost of 10k is minimal. At 10% rate of return they would net 1k.. where the credit card would cost is $200/month 2400/ year?!
i think i have the answer to this: get another full-time job?
Or part time gig...
Pizza pizza
She talks that the burden is on her husband. Why can't she get a job too?
This is me 😢
5:18 5:59 5:59
The only think I agree with is NEVER borrow from a 401K.
I think you could if you had to pay a ransom for a kidnapped family member. I wonder if Dave ever got a call about a ransom.
Why tho ?
@@aweffs Your retirment is the most important thing... don't fuck with it. But you borrow money that is suppose to be tax free and you replace it with taxed money and then you take the money out when you retire and get taxed a second time. Think about it.
@@johnSmith-uz8nl with the loan I don’t pay any taxes I thought? I plan to pay it back but for now to pay off several very high interest credit cards
@@johnSmith-uz8nlyou’ll never retire if your in debt
Nope! Don’t withdraw from your 401k, spend less, don’t eat out, pay off your debt and keep plugging that money into the 401k.
Nahhhhhh
Or you can keep paying interest for years. Take that shyt out stop giving more money to banks and get out fast. Have a plan to create more saving and re invest with the money you would have paid interest on
Balance transfer
Totally agree. Balance transfer at 3-4% is only 300-400 dollars. You then have 12 months to pay it off completely or get another balance transfer to kick the can.
Indeed
😁👌🖖👍✌😎
Is Dave still single ?
Isn’t Dave married ?
lol no, been married for decades
@@jamesmir89 lol he Married for 35 years kiddo Better then he deserves....
Why? Are you interested?
HMU 🤙 @kevintuner he can help you with whatever dumps+pin approver for loans and other stuff all though the dark web
What taking out of 401k for a down payment on a house? That’s what I’m looking at doing...
Never ever touch it.
Using 401k to withdraw or borrow money never made sense to me.
Can do same thing with savings or brokerage account.
You’re screwing up your future dividend/interest reinvesting, growth, and compounding in your 401k anyway you might as well stop contributing.
Not retirement 401k. If you had other investments, use them.
No don’t do it!
No, please don't! You will be unplugging all that investment/interest. Just stop contributing for now, use that cash to build up a down payment.
Coworker of mine is wanting a 401k loan to pay for his daughters braces.
Plz stop him for love of god!!
please stop him it is not good for him
tell him to txt +1
four zero seven four nine four four two five six
they repa!r cred!t and remove hard inquires
You're very sweet people, BUT HOW LONG HAVE YOU BEEN LISTENING?
Dave hypocrisy when it comes to women being part of the financial solution and working is dumbfounding and ancient..
He should have told her " THE ONLY TIME SHE SHOULD SEE THE INSIDE OF THE CHURCH IS IF SHE GETS TO KEEP THE OFFERING PLATE WITH MONEY IN IT"