What Ways are Available to Consolidate Credit Card Debt? (cont.)
Contributed by Melanie Vannuys
Retirement Funds To Consolidate Credit Card Debt
If you work for a company that offers a 401K plan, chances are you can take a loan out against your balance. You should only use this option, however, if you have no other choice. The interest is almost never tax-deductible, however, you are paying yourself back instead of a bank, which isn't necessarily a bad idea. If you do use this option to consolidate your debt, be sure you can pay it back within five years of the loan date. If not, the IRS can charge you penalties and assess taxes.
Also, if you quit your job before the loan is paid in full, your employer will call the loan in full when you leave.
If you find yourself losing sleep and constantly worrying about your financial situation, then you need help. Using one or perhaps a combination of any of these methods may be able to help you. Whatever method you choose, just remind yourself of how you got into your financial jam in the first place and make sure you are taking steps to avoid getting into the same predicament in the future. Responsible spending habits, living within your means and paying off your credit card bills each month will forever be the best form of debt consolidation.
