Posts Tagged ‘Why 401(k) Loans Are a Bad Idea’

1. Interest Rates Aren’t What They Used to Be Remember when 401(k) loans were a “cheap” way to borrow? That was back when interest rates were low. Now, most 401(k) loans charge prime plus 1% or even 2%. With the prime rate at 7.5%, you’re looking at 8.5% or 9.5% interest on your loan. That’s…