Using 401 to pay-off cards.

Submitted by dendeedid on Tue, 12/12/2006 - 15:08

I have withdrawn $$ from my 401K to pay-off 2 credit cards. What percentage should I offer them to wipe out my debt?

Hi Dendee,

First you will need to pay off the principal amount but after a good negotiation you can get a waiver of about 40 to 60 % from your other charges and interest payments.

Other thing is that you should have looked at some other option to get the money instead of withdrawing from your 401k account as it not advisable to withdraw out of the 401k retirement account.


Tue, 12/12/2006 - 18:13 Permalink