Do you in fact know anyone who has taken a 401k loan?
Right now, I can't get a mortgage loan from a bank, but then again, I don't have a 401k either. I'm not sure of what scenario would make me do it if I did have a 401k.
Right now, I can't get a mortgage loan from a bank, but then again, I don't have a 401k either. I'm not sure of what scenario would make me do it if I did have a 401k.
Another shared that he used it for home repair. Another bought a car.
The downside seem to be 1) high fees 2) that money isn't making interest 3) you wind up paying tax on it when you pay the loan back with your regular pay.
The only pro that I could see to it was that it doesn't require a credit check. You're borrowing your own money.
However, this is far outweighed by the fact that if you leave the company the balance is due immediately. So if you borrow $10k and get fired with a $5k balance you will immediately owe your company $5k.