Help a reader out by reading this, then answering the poll:
When I first spoke to you, I had just paid of my cc debts and was working 2 jobs and saving a little money. 4 years later, and I have since moved from NYC to Miami, got married, just had a baby, and right now I am in the process of buying our first home. (Not an investment, but our primary residence.)
With all of the life changes that have happened, my savings is gone (we had to pay for the move, marriage, and honeymoon ourselves) and over the past 2 years I have watched as my credit card debt has risen to over 13K. I have a very well-paying job, making 130K in Miami as a computer programmer, but right now I am the only source of income, as my wife is not working.
Anyway that is a quick catch-up with my life to date. And I have question for you.
Once I close on my house, my next move is to get rid of cc debt. Here are the 3 choices I see available to me. (Perhaps there are other ways, I am just not aware)
A. Pay it down heavily and hope to pay it off over 2 years.
B. Move it over to a 0% card for 15/18 months.
C. Take a loan out against my 401K to pay it off credit card immediately
Chris also wanted me to know that the “loan against my 401k is special in that the 4% interest I pay back is added back into my 401K account. So every penny I pay goes back to my pocket. There is no hit to my credit, since I am borrowing against my own funds, and it allows me to pay back less aggressively.”
What would you do? Please help me help Chris by choosing one option from the poll …
Note: if you chose ‘other’ please leave a comment; if you didn’t choose ‘other’, please still leave a comment 😉