Finance Questions

Question: I am a financial idiot, can someone answer a few Personal Finance questions.?

Hello,

I have taken over sole responsibility for managing our finances. I have some very stupid questions.

1. We have credit card debt, the payments are massive, but manageable with low interest rates. Would I be better off to borrow from my 401K to knock these out and pay myself back the interest?

2. Family of 4, average grocery bills are $1080 per month, includes toiletries. Seems high, what does the average family of 4 typically spend?

Answer: no.. NEVER borrow from a 401K or any other retirement account to do this. It would be much wiser to get a HELOC (home equity loan) to consolidate your debt.

You groceries are a bit high--- stay AWAY from the frozen food aisle... trust me you'll save a bloody FORTUNE.

If you dont get a HELOC, pay your Highest interest rates balance first. This slows your rate of debt accumulation faster...

Questions & Answers with John MacArthur (www.gty.org)