Quote:
Originally Posted by lp_fatcat
Thanks for the feedback. Just a few more details on my debt...
The 401K was taken out to pay for funeral expenses. The loan was a total of $8000 for 5 years. I took the loan out in December of 2007. I'm currently 32 years old and the payments are coming directly out of my paycheck. My job is pretty stable but who knows what can happen in the future.
The credit card was closed by the company after one late payment so there is no chance of me running up another balance.
I know that you shouldn't borrow money from your 401K so I guess my knee-jerk response was to pay it back first.
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The only reason I would consider paying the 401 first, is because if you were to loose your job, that money has to paid back within 6 months or less, or you will penalized and have to pay the tax on it. Otherwise, the CC's are definatly first.