Coronavirus Megathread Update (January, 2021)

Why does PF hate 401k loans?

I don’t see how it’s not in my best interest right now. I have CC debt charging over 20% interest. I want to pay off the credit cards to avoid interest and increase my credit score to refinance my mortgage. 401k loans do not count against your credit.

Why would I pay the CC interest or personal loan interest when I could be paying less interest and to myself? Especially with the stock market at an ATH... I would never do this at the bottom. The investment yield is also significantly higher than bonds.

My plan provider also allows me to continue the payments if I leave my job. I am also currently maxing my 401k, so I get to also save money on a 25-30% tax deduction on $19.5k.

/r/personalfinance Thread