Tip 6. Last resort debt help - Zero Debt Secrets and Tips

Let your 401K help you with your debt.


Some people hate the idea of touching 401K money. But I see no reason of suffering huge financial losses paying high interest on credit cards and other loans for the sake of good but not set in stone financial rule. I'm not advocating pulling money out of 401K account - this is a really bad idea.

Instead, you should get a loan from financial institution holding your 401K. You'll pay interest on that loan to YOURSELF since you are borrowing your own money. Use the money you've got to pay any high interest debt. After you are back on your feet, pay your loan back on 401K.
 
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