Reply to 401K loan to pay credit card debt

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[quote=Anonymous][quote=Anonymous]I am not a financial planner, but perhaps it makes sense to take out the loan for the $7000, and use that to pay off at least some of the highest interest rate credit card first.  Then, in a year, reevaluate.  I am extremely opposed to pulling from a 401(k).  What I might do instead of pulling from is not contribute for a year and take that money and aggressively attack the credit cards.

Also, let's say that you pay $7000 to one card immediately, and then keep paying that card down.  In a few months, you might be able to negotiate a lower payment with the credit card company.  While you will still have debt outstanding, the difference is that your total amount owed vs. total amount loaned ratio will be better.  [/quote]

OP here...thank you for the advice.  I've thought about is as well.  I could pay off one card with $7,000.  I thought about stopping contributions but I only contribute 5% to my plan in order to get the match.

As far as cutting my budget, I will need to reexamine.   I moved from an apartment to renting a room so that helped some.  I have an elderly grandmother that is living on a minimal social security check so most of my "extra" money is spent helping her.  I could probably  cut back by cooking at home more.  I leave one job at 5 to be at the next by 530 so often grab something on the way.  I could try to make several meals on Sunday.

Thanks for the suggestions.  I appreciate hearing from everyone.[/quote]

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