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Originally posted by Yakk
Trying to understand the terms.
You pay 90$/year for maintenance fees, which is 1% of principle, but it doesn't decrease as the principle drops.
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Right.
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Any interest on the loan? (ie, money that is lost)
You end up paying 5% more than the value of the loan over 3 years into the 401 k?
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No interest other than the additional amount going into the loan, which is NOT lost. Right.
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I'd be somewhat tempted to pay off your credit cards with it, rather than paying off a probably good-terms loan from your 401 k.
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The credit card bill isn't trivial, but it's no big deal either. I can pay it off in two or three months.