Pay down 401k loan or credit union loan first?
Is it smarter to pay down/off a loan I took against my 401k (I'm 42 yrs old) or my credit union loan? They're both about the same loan amount and interest. The credit union is holding my truck as collateral for the loan, so that would be freed. But if I lose my job I'm worried I would owe the 401k loan balance at once (which is what I've heard from co-workers.) Thanks for your input.
Asked By: curlytop - 10/3/2011
Best Answer - Chosen by Asker
Best for your credit rating - pay off your truck loan at the credit union... More
Answered By: Huntsman - 10/3/2011
Additional Answers (3)
I would pay off the 401(k) loan first. If you leave your job for ANY reason, the loan becomes an early withdraw, subject to the 10% penalty, in 60 day. In theory, you could pay it off to avoid the early withdraw, but you can't afford that if you are unemployed.
Answered By: STEVEN F - 10/3/2011
The 401K loan.
Answered By: Judy - 10/3/2011
The truck loan. 1. You are paying interest to a bank and helping them make money whereas on the 401K you are paying interest to yourself so pay yourself the most interest. 2. One of those other answers mentioned if you g******d off you still have a paid off truck which you will need. I totally agree there. 3. Yes... More
Answered By: Ron - 10/3/2011
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Legitimate Survey for Cash.Extra Money for You,Join Here!
$21/hr Start, Avg Pay $72K/yr Check Our Map of the 1700 Openings.
Free for Job Listers and Job Seekers!
Other Career Questions
Do most mechanical engineering jobs offer job security?
What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.