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I have credit card debt, and a 401k account from my last job that equals that debt, what are my options here?

Asked by luminous00 (350points) July 23rd, 2008

I know the repercussions already if I were to drain the 401k to pay this debt, but right now it seems like the only logical thing to do in order to get to a clean slate so I can start saving for a house. If I had a clean credit card, I’d be able to pay it off every month and then have money saved quickly. My 401k is at 7k, I’d lose 2k from taking it out instead of transferring, and that would pay the cc off in full. I don’t see taking a loan out as an option only bc I’m already paying for 3 loans as it is. Any help would be greatly appreciated.

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