Michelle Singletary wrote an article in the Washington Post titled Which is worse: A payday loan or borrowing against a 401(k)?
Many would argue that borrowing from payday lenders are worse. While I agree. Borrowing from your 401K could be bad as well. Taking money from your retirement funds can cost you. I would speak to an accountant before touching any funds from your retirement plan.
I believe in paying your debt down as much as possible. In Michelle’s book, Prosperity to Prosper she talks about paying your smallest debt down first. After paying down your smallest debt add that money to the next bill. Keep doing this until your debt is paid off. By paying off your debt you will have money to do the things you want.
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