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February I will be able to pay one of these off completely. You would think the Credit Card would be the easy choice because of 10% interest rate and the 401k Loans are Interest Free. However, the 401k Loans total $448.47 per pay check so that is $896.94 per month that is deducted out of my check. I was thinking I would have $896.94 per month more once that is paid and then I can just focus on paying the credit card off then.
Right now my minimum CC payment says $233. So between the CC and 401k I am paying $1129 per month. And that is if I just pay the minimum CC which isn't good. If I pay the 401k loans off then I can pay $500 per month on the CC to pay it off eventually (will take two years roughly).
Personally I would payoff 401K loans. Id much rather have that money back in the market asap.
Agreed. This will open up cash flow to payoff the credit cards quicker and money will be back in the market. Plus this has been the best time to ever be in debt with all the 0% credit cards. Have you considered applying for the Chase Slate or Discover IT to consolidate your credit card debt at 0%?
I agree based on the fact alone that the OP could go from a net of $1100 per month debt payments to around $650. This would get him debt free in 18 months and open up an additional $500 in free cash flow. I didn't add on the interest payments cause I'm too lazy to do that this early.
I agree based on the fact alone that the OP could go from a net of $1100 per month debt payments to around $650. This would get him debt free in 18 months and open up an additional $500 in free cash flow. I didn't add on the interest payments cause I'm too lazy to do that this early.
Yeah, I agree on the cash flow. Getting one of those 401K loans paid off is like giving yourself a raise. But that 10% is a killer, I'd at least transfer that somewhere lower.
If I pay $500 per month it will take 27 months to pay off. If I switch to a 0% credit card it would take 24 months. Not sure how long the 0% lasts though. I have seen some that are for 18 months.
Another thing to consider is 2 of the 401k Loans have 1 year of payments left and the other has 18 months left. Another thing too is having a credit card with a $12k limit that is maxed out really affects your credit score.
The main thing to consider is how freaking fast you can pay them off. What can you do increase your debt payments. Your CS will work it self out.
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