Was this an okay move?
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| Fri, 12-16-2005 - 3:29pm |
We had 32K in credit card debt. I know, its shameful. I was completely honest with DH about it and he just shrugged his shoulders and said "Its only money, we will figure it out".
We are both 29. He has a 401k, a small IRA of 3900, and he also has his pension plan, which I think he is fully vested in now. The 401K had 42000 in it. The other day, he told me he took a loan from his 401k for half of it (21000). He put it on the credit card debt, so now we have 11K in CC debt. His explanation was that the payments will come out of his paycheck and we will be paying ourselves back with interest, not someone else. He said it will take 5 years to put it all back. He also said that the payments end up being less than what we pay for that particular cc that we had the 21K on.
At first I was uncomfortable with it, but since there are no penalties, I am feeling better about it. Of course, that is 21000 that isnt earning anything and growing, but I guess thats what we get for running up our credit cards. At least there is some left.
Would you have done this? I mean, its already done..the check came and he cashed it and paid off the 21k credit card. Im just wondering if it was the right move.

Hi there - me again. :)
All my best,
Danni
I have done this in the past and sadly only found myself in higher debt again.
You need to make certain that you dc not charge again.