mkopec
<Gold Donor>
So here is my situation. Back in like 2009 one of my rental properties we owned went into foreclosure. Shit was bad at the time, we lost a renter and could not replace him, and could not cover the place ourselves. so we ended up losing the property. Credit fucked after being close to 800 all my life....
So fast forward to today... My fucking 99 Grand Prix took a shit. And while we do have another car, it was the wifes Expedition so now Im stuck driving that while she has no ride. So the bottom line is that we need a new ride. so I go to the dealership and I can still get a loan and all that, but they want to charge me almost 11% for a car loan. FUCK THAT!
So another option that I have been looking into is a 401K loan. My primary 401K has some real good cash in it and I can borrow up to 50% of it. Not that I would need that much, but I was looking at getting $20K and the rate is 5.9% all being paid back to myself. YEah, I will lose out on the investment of that $20K for 5 yrs, but all in all I see this as a good way out of my predicament.
So any drawbacks to this plan that Im not seeing? I looked into it and I can still contribute to this plan while my loan is out. which is roughly 10% of my salary with the company I work for matching that plus another 5%.
So fast forward to today... My fucking 99 Grand Prix took a shit. And while we do have another car, it was the wifes Expedition so now Im stuck driving that while she has no ride. So the bottom line is that we need a new ride. so I go to the dealership and I can still get a loan and all that, but they want to charge me almost 11% for a car loan. FUCK THAT!
So another option that I have been looking into is a 401K loan. My primary 401K has some real good cash in it and I can borrow up to 50% of it. Not that I would need that much, but I was looking at getting $20K and the rate is 5.9% all being paid back to myself. YEah, I will lose out on the investment of that $20K for 5 yrs, but all in all I see this as a good way out of my predicament.
So any drawbacks to this plan that Im not seeing? I looked into it and I can still contribute to this plan while my loan is out. which is roughly 10% of my salary with the company I work for matching that plus another 5%.