Loan Consolidation Unsecured
Should I payoff my 401k loan with an unsecured debt consolidation loan with nearly the same rate?
My 401k loan plan is a fixed payment plan, pay no more or no less. I owe roughly $19K w/ 8% int. (home loan) with 6+ more years to pay off. The debt consolidation loan is for 8.99% for 5 yrs. One caveat ofcourse, is if I miss just 1 payment rate can adjust as high as 27.99! Gotta go w/ autopay deductions.
Doing this will give me more take home pay, but is it worth it?
Given your options, I would prefer keeping the 401(k) loan. I would pile up as much as possible in a savings account to pay off the 401(k) as soon as I could. If a balance transfer to an ordinary credit card is an option, it sounds better than either of your options to me.