Borrowing Money From Your 401K-Only In Emergency’s

Saturday, December 15th, 2012

Sometimes you really just find yourself needing some money. Unexpected events such as a car breakdown can put a damper in your budget no matter how well you plan. In situations where you need money and need it quick, you can look into Borrowing money from your 401 K. Typically, when someone makes a 401k plan they do not expect to take any money out of it until it has grown and matured.

But life does not always go the way we hope and sometimes we need to delve into whatever source of money we can find, and sometimes that means taking money from our 401k. This has been thought of and that is why most 401k plans will actually have that type of loan available.

While taking a loan from your 401k can often make the difference between paying off a bill and falling further into debt, there are risks involved. If you do not handle the loan carefully you can not only run the risk of having to pay much more down the road, but you also run the risk of ruining your 401k.

Not all 401k plans are the same and so there is no universal method for getting money out of them. You need to check into the specific plan you have and find out what restrictions apply when Borrowing money from your 401 K. For most plans they will require that you borrow a minimum amount of money, usually anywhere from five hundred to a thousand dollars. They often will also have a maximum amount that you can borrow, usually around fifty thousand dollars. However, again, every plan is different so you will need to look and see whether this applies to you or not.

While taking money from your 401k plan may be a life saver, you may not be able to. While most plans are different, there are usually similarities in the form of requirements. Most plans will not let you borrow money from them unless you can meet the requirements they put in place. If you do not meet these requirements they will not lend you the money. So this is another reason for why you should look over your plan carefully and read the fine print so that you are properly educated.

Like most loans, a loan from your 401k will have a set repayment plan that you will have to adhere to. This can be anywhere from 5 to 15 years depending on what type of loan you took out and what type of plan you are on. The nice thing about Borrowing money from your 401 K is that, while you of course have to pay it back, the interest rates are fairly low and are actually put back into your 401k.

While taking a loan from your 401k is a good option, there are some additional fees that you may have to pay. Such as yearly fees or fees if you miss a payment. If your company has someone who manages 401k plans you should talk to them in case you have any questions.

Borrowing Money From Cash In Advance Business

Thursday, December 13th, 2012

Sometimes you really just find yourself needing some money. Unexpected events such as a car breakdown can put a damper in your budget no matter how well you plan. In situations where you need money and need it quick, you can look into Borrowing money from your 401 K. Typically, when someone makes a 401k plan they do not expect to take any money out of it until it has grown and matured.

But life does not always go the way we hope and sometimes we need to delve into whatever source of money we can find, and sometimes that means taking money from our 401k. This has been thought of and that is why most 401k plans will actually have that type of loan available.

While taking a loan from your 401k can often make the difference between paying off a bill and falling further into debt, there are risks involved. If you do not handle the loan carefully you can not only run the risk of having to pay much more down the road, but you also run the risk of ruining your 401k.

Not all 401k plans are the same and so there is no universal method for getting money out of them. You need to check into the specific plan you have and find out what restrictions apply when Borrowing money from your 401 K. For most plans they will require that you borrow a minimum amount of money, usually anywhere from five hundred to a thousand dollars. They often will also have a maximum amount that you can borrow, usually around fifty thousand dollars. However, again, every plan is different so you will need to look and see whether this applies to you or not.

While taking money from your 401k plan may be a life saver, you may not be able to. While most plans are different, there are usually similarities in the form of requirements. Most plans will not let you borrow money from them unless you can meet the requirements they put in place. If you do not meet these requirements they will not lend you the money. So this is another reason for why you should look over your plan carefully and read the fine print so that you are properly educated.

Like most loans, a loan from your 401k will have a set repayment plan that you will have to adhere to. This can be anywhere from 5 to 15 years depending on what type of loan you took out and what type of plan you are on. The nice thing about Borrowing money from your 401 K is that, while you of course have to pay it back, the interest rates are fairly low and are actually put back into your 401k.

While taking a loan from your 401k is a good option, there are some additional fees that you may have to pay. Such as yearly fees or fees if you miss a payment. If your company has someone who manages 401k plans you should talk to them in case you have any questions.

Bank Fees One Of The Ways Banks Make Money

Friday, December 7th, 2012

One of the ways banks make money is through the various Bank Fees they have. But the major one that nets them the most profit is the dreaded overdraft fee. I am sure everyone out there has had to deal with this at least once in their lives. It is not a pleasant thing to see when you log into your account. Not only could you not cover the payment, but now you have to pay even more.

If you do not want to have to deal with these overdraft fees, there are some rather simple steps you can take to avoid them. There is also some information you can use to better protect yourself. Learning some of the games the banks like to play will give you the ability to play, and win those games.

First and foremost, try to avoid cutting it close. If you will be getting money deposited overnight, as well as money being taken out, this can often lead to overdraft fees. One of the tricks banks like to play is that they will put a cheque through first, so that you are overdrawn, then they will actually deposit the money you earned. So even though you had the money there, because of the order it was all done in you still have to pay an overdraft fee.

So if at all possible, try to avoid waiting until the last day in order to protect yourself from such Bank Fees. Another thing you should try to do is stop relying on cheques or credit cards. These things lead to a false sense of security, as you can buy things even when you do not actually have the money.

Things like credit cards are good for emergencies, but they should not be used for daily things. If you are buying gas, or buying groceries, pay in cash. If you do not have cash, ask yourself why? You need the money to cover these expenses, whether you use a credit card or not, so figure out why you seem to never have the cash when you need it.

If you can alter your budget to rely solely on cash, you will have a lot fewer problems with debt and the various Bank Fees out there. It can be a bit more of a hassle having to carry cash around all the time, but in the long run it can save you a lot of money.

Another tip you should look into is the whole overdraft protection thing banks offer. It sounds good in theory, protecting you so that you can buy what you need even if your account is empty. But it really is not useful. If you use credit cards primarily, then simply having them denied outright is preferable.

It can be embarrassing to have your credit card denied when at the store, but it is far better than having to pay an overdraft fee, isn’t it? Money is tight for a lot of people, see you need to do what you can to save what you do have. Even if it means suffering a little humiliation.