401k contribution vs. pay off credit card debts AND take out school loans to pay off credit cards – can I?
So i can’t decide if i should stop my 401k contributions and pay off my high interest credit cards. Here’s my situation. My company matches dollar for dollar up to 5.5%, which is great! However, i have >$10K in credit card debt w/ APR of about 17%….
Let me add one more wrinkle. I plan on leaving the US next August to attend grad school in London. This will no doubt require student loans… given this info what should i do? Should i stop 401k and attack credit cards? I’ve been told i can take a large student loan out for more than i need and use that money to pay off the excessive debt (essentially “refinancing” the debt at a lower rate)? Can I do this?
Do not stop your 401 contribution……..I retired at 55 and live on the beach…..not a care in the world…….thanks to a 401 plan…….the second item…………borrow money to pay off borrowed money is never a good idea…….what will be your source of income when in London……most likely 0…….appears your need to get your finance in order before you go any further……..your on a death spiral……
