On the heels of paying off a $1,700.00 debt a few weeks ago I applied today to take out a loan from my 403(b) account to pay off yet another $1,700.00 credit card debt. I’ll be paying myself back at 9.5% interest but it sure beats the 20% I’m paying to the credit card. Plus the interest goes back to me and I should be able to pay it off pretty quickly.
The application will go out tomorrow and I should have the money in my account within 10 business days after that. This will result in me paying off over $3,400.00 in credit card debt in about a month.
I’m still a ways off but I can almost smell freedom!
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5 comments:
Wow, you are doing great! You should be very proud of yourself!
Thanks squirrel. I am excited and proud of myself but I still have a long, long way to go.
I'm hoping to pay off this 403(b) loan pretty quick and then take another huge chunk out of my credit card debt.
Shelly,
Please add me to your directory.
Thanks!
I don't understand if the pension loan is such a good deal that you don't borrow on it to the max then pay it last after everything else is paid?
Cheers,
Great question, Paroshep! Here's my reason. First, I am only able to borrow up to half of the amount of money in my account so there is no way I could borrow enough to pay off all my debt at once.
The second reason I only do one debt at a time is because it allows me to pay back the loan quicker in case I needed to use some of that money for an emergency.
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