Is there a way to take a loan out against an IRA account?
OK, so please read this clarification if you are going to answer (because I can already anticipate the answers and it will not be what I’m looking for if you don’t read this). This is not a 401K loan I am talking about that you get from through your employer (so please don’t go down that path). Also please don’t suggest a home equity loan (the equity in our home is too low for that). I am talking about going through some type of financial institute and having them give me a loan using the IRA as collateral (and obviously taking into consideration the income we are bringing in and credit rating). I am simply trying to find a way to eliminate some credit card debt at a lower interest rate. If that’s not achievable then I will just keep paying off the cards as I am, by making additional payments on each. Thanks in advance.
Thanks for the quick responses guys. I should have also mentioned I was not looking to take a distribution and pay the tax penalties, but the initial answers seem to be on track with what I was thinking.
One of the reason I love Yahoo answers is that I can use the info provided by responders and then use that to google more info. I just googled tax violations thanks to the first answer and this is what I found (which sounds like it’s my solution)….
Call the 401k plan administrator for the company you currently work for. Ask whether it will allow you to roll you IRA into the 401k. While this is not the typical rollover discussed in a financial forum, the IRS does allow this and most administrators will agree. Request any paperwork you need from your plan administrator.
Call your IRA administrator and request a distribution form. An IRA rollover–regardless of what direction it is moving in–takes a distribution of assets from one account and has 60 days from the date of liquidation to return the assets in kind (cash) into another qualified plan–in this case your 401k.
Fill out all paperwork obtained, sign it and submit.
Deposit the IRA distribution check into your 401k p
It’s illegal to use the IRA as collateral. Violates tax law.
As a teen, can I get my credit card forgiven?
I’m 16 years old. Last year I did something very stupid and ordered a credit card. Now I am having difficulty paying it back. I read online about something called credit forgiveness. Is it possible I can get this or something equivalent done to eliminate this debt? It was a very stupid mistake on my part and I wish I could take it back. What are my options?
Must have lied about your age. Now you must pay the consequences!
You have committed bank fraud, NO KIDDING!! And can be prosecuted for such, it is a felony
No forgiveness for you…….7 Years
What is thebest way to pay off my credit card debt?
I have debt on 3 credit cards. I have heard that paying off lowest to highest balance allows you to pay off more cards in a shorter amount of time because you eliminate the lower balances quickly. But I also know that it is wiser to pay off the one with the highest interest first in order to save yourself from paying ridiculous amounts of money. I have a balance of $657 on a Capital One card with a 15.3% APR. I have an Amazon card with a balance of $1,178 and a 15.24% APR. I have a Chase credit card with a balance of $2,911 and an APR on purchases of 10.24%. I am also getting charged 10.24% on that card for $541.14 (as a result of a credit card balance transfer).
Any good suggestions would be great.
The chase card has a 10.24% on $2,342 in purchase and another 10.24% on $541.14 from a balance transfer.
Generally the rule of thumb is to pay more on the highest APR and when paid off, use the funds you were paying and add them to the payment on your next highest APR account.
But seeing as to how your APR rates are close to the same on the accounts (excluding the Amazon Card) you might want to try another approach.
It is better to reduce your debt utilization ratio on your cards. Figure out which card has the highest debt utilization ratio and pay that down to under at least 30% as quick as you can.
Example: Take your credit limit and figure how much of the balance owed in percentage ($2000 credit line with a $600 balance means you are using 30% of your credit line.)
If any of your accounts are above 30% then pay them off to get them down to under 10%, then work on any other ones that may be using a high amount of your credit limit.
Eventually you want to get your total debt utilization on all of your accounts under 10%, then you will see your score rise quicker. Keep your utilization under 10-15% if possible.
Hope this helps answer your question
Do you think that credit cards should be rid of if people are not responsible with them?
Seems that millions are always either filing for bankruptcy or always in debt & most of the time it’s b/c alot (not all) people are not financially responsible & expect a free ride with these credit cards. Then they act as if they are not suppose to pay the money back. I think if people are not going to be responsible then maybe it’s time credit cards should be eliminated. The deadbeats are making it very hard for those who are responsible. What do you think?
And before anyone bashes me no I’m not a supporter of these jerk collection agencys that make life miserable for many people in debt.
If you are financially responsible. You wouldn’t use credit cards period. Every time you use it you get into debt.
They make all the rules and can change the rules anytime they want.
Oh, i need a credit card to “build credit”.
Bull!. People obsess with this credit score bull.
The only people that need to obsess with the I love debt score are the ones that plan on borrowing lots of money and paying lots of interest.
If you live on less than you make you will win with money.
A bad credit score from not paying your bills is a bad idea. A 0 credit score from not borrowing money will still get you an apartment and a job and a home loan (manual underwriting).
Debt Free is Definitely the way to Be!
Worked with a debt settlement company, but now have the $ to pay full amount. Which is better?
Several years ago, I was under-employed and drowning in credit card debt. I chose to go the debt settlement route. I was never comfortable with the process. Recently, I have come into a sum of money which can eliminate that full amount of debt with no settlements. Since my credit score is fairly low already, should I take advantage of the relationship with the debt settlement company and pay less? Or would it be better for me, and my credit, to pay off the full amount?
I don’t believe you have a choice here. Once you go into settlement, you and the settlement company along with your creditor have come to an agreement that you will pay less than you owe. If you already have been paying ( the settlement company ) for this, than you should go on and finish with the settlement company. You calling the credit card company and telling them you can pay what you originally owed will not change anything. As of now, your agreement is with the settlement company. Pay off the settlement company and find out what the next step is, they know the process. You should ask for a letter of “paid in full” from the creditor once you have paid off. This should help you credit as it will not show the debt settlement. Talk to the settlement company and ask any questions you have, just don’t tell them how much money you have now, and pay off what was agreed on. After that obtain a copy of your credit report to make sure it was reported correctly. It should show no defaults. Read up on the link below. Best of luck.
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