Reported 2 days ago
A New York man contemplates borrowing $33,000 from his 401(k) to pay off various debts, but financial advisor Dave Ramsey advises against it, encouraging budgeting and a systematic repayment strategy instead. While borrowing from a 401(k) can lower interest rates on debts, it carries risks like lost investment growth and repayment obligations tied to employment status. Ramsey stresses the importance of understanding these risks and suggests exploring other debt consolidation options more suited to individual circumstances.
Source: YAHOO