Convenience checks question..

Read your agreement. Most convenience checks made to an individual (instead of a company) can be assessed as a cash transaction...which means mucho interest.

If it doesn't mention this in the card terms agreement contact First USA and ask them. Believe me, you don't want to be making payments at 24.99%.

Dani

 

If you cash out of your 401k, you will owe taxes on that money (which will be taxed as ordinary income, say 27% depending on your tax bracket. That's a lot more than the interest rate you'll be paying), plus you are losing out on the opportunity for tax-advantaged growth, and that's forever. It's also sheltered from judgments and lawsuits, and can follow you from employer to employer. I'd take that 401k money last. You will probably thank yourself in 30 years.

 

I would suggest a sugar momma or sugar daddy.
Why spend your money when you can spend someone else's?

Dani

 

I forgot to add that there is also a 10% penalty tax for early withdrawal from your 401k. That's on top of the taxes you would pay on ordinary income. So assuming you are in the 27% tax bracket, on a $5,000 payout from your 401k you would pay about $1850 in taxes. (5000 x .37). By contrast, the interest you pay on those checks is 6% if I recall correctly, or $300 (5000 x .06) . Sometimes numbers don't lie ;-)

Good luck, whatever you decide to do.