u/ManiacGoober29

I’m 24 $14,000 in credit card debt making 28$ a hour and I had originally moved back in with my parents to save money after several injury’s at work but I’m just paying most of their bills now. The only thing keeping me from moving out is high minimum credit card payments

My parents are giving me holy hell about pulling from my 401k as a non taxed loan to pay my debts off at 7.5% interest ( which will be payed back into my 401k )
vs 28% interest to the bank

The 401k loan will be taken out of my check each week ($86) then on top of that just save up enough money with working overtime

Am I making a mistake?

I’m 24 $14,000 in credit card debt making 28$ a hour and I had originally moved back in with my parents to save money after several injury’s at work but I’m just paying most of their bills now. The only thing keeping me from moving out is high minimum credit card payments

My parents are giving me holy hell about pulling from my 401k as a non taxed loan to pay my debts off at 7.5% interest ( which will be payed back into my 401k )
vs 28% interest to the bank

The 401k loan will be taken out of my check each week ($86) then on top of that just save up enough money with working overtime to make a one time payment to finish the loan off

Am I making a mistake?