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Borrow Money To Pay Off Debt

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Ways to borrow some money to pay off debt include borrowing against life insurance policies and taking out home equity loans, according to The Motley Fool. Some life insurance policies have cash values allowing policyholders to borrow against that value. Home equity loans allow homeowners to borrow against the equity in their homes to consolidate debt or make home improvements.

Another way to borrow money to pay off debt includes borrowing money from 401(k)s, explains The Motley Fool. Many 401(k)s allow plan holders to borrower up to 50 percent of the value of the account and interest rates on the loan run one to two points above the prime rate. However, loans against 401(k)s cause borrowers to lose tax-deductible contributions and tax-deferred

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