Options for Paying Off Credit Card Debt: Hardship Programs, Balance Transfer Cards, Loans and More
Hear Nerds\u2019 \u201cfinancial horror stories\u201d and explore solutions for paying credit card debt, from 401k loans to bankruptcy.\n01:20 This Week in Your Money: Hosts Sean Pyles and Sara Rathner share their personal \u201cfinancial horror\u201d stories, including Sean\u2019s rejected credit card application and what happened to some of Sara\u2019s retirement account funds. They\u2019re cautionary tales that will help you make sure you\u2019re getting the most out of your money.\n09:46 Today\u2019s Money Question: Sean welcomes Nerd Liz Weston and Tommy Tindall to help answer a question about whether a listener should consider taking out a 401k loan to pay off credit card debt. Tommy explains how calculating your debt-to-income ratio can help you understand your options. He also shares the pros and cons of various methods for paying off credit card debt, including credit card hardship programs, balance transfer cards, personal loans and filing for bankruptcy. He also shares his personal experience of taking out a $15,000 loan from his 401k to make a down payment on a house, breaking down both the benefits and opportunity costs associated with the decision.\xa0\n28:05 Final Thoughts.\nIn their conversation, the Nerds discuss: financial horror stories, credit card debt, debt-to-income ratio, investment journeys, 401k loans, debt-to-income ratio (DTI), credit card hardship programs, balance transfer cards, personal loans, missed payments, bankruptcy, high credit scores, retirement money, debt solutions, paying off debt, financial tools, compound returns, cashflow challenges, opportunity costs, credit counseling agencies, and debt management plans.\nTo send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.\nLike what you hear? Please leave us a review and tell a friend.\nIf you\u2019re looking for an app to track all your money in one place, then check out the free NerdWallet app: https://nerdwallet.com/app