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Debt Relief With Retirement FundsCredit card debt consolidation occurs when you take out one larger loan to pay off several smaller loans. If you have been waiting for the right time for credit card debt consolidation, then consider using your retirement account to consolidate your high-interest debt. Though this can be an effective way to relieve yourself of debt, be sure to consider the consequences of wiping out your retirement fund. Credit card debt consolidation through a retirement fund is possible even for business owners. If you have, or start, a business with no employees, or if you are an independent consultant, you can open an individual 401(k), called a Self-Employed 401k, and borrow from it for credit card debt consolidation. One may also transfer tax-free your IRA or 401(k) from a previous employer for credit card debt consolidation. This form of credit card debt consolidation is useful for those using credit cards to cover their expenses while looking for new work. You can borrow up to 50 percent of the balance of your Self-Employed 401(k) account for credit card debt consolidation. This type of loan is both tax- and penalty-free as long as it is paid back in a timely fashion. A retirement loan requires no credit check or long application form and it carries a low interest rate. This benefits those with huge credit card debt, as credit cards generally carry high interest rates . Credit card debt consolidation can be quickly and easily done with the use of retirement funds. This may be an attractive option for debtors struggling to pay their credit card debt. Author Bio: Scott Sumerford has several years of experience working in the financial industry and has written a myriad of articles on various financial matters. He graduated from the University of Texas at Arlington where he worked as a writing center tutor and contributed to the university's newspaper, The Shorthorn. Read more about how Credit Solutions offers viable alternatives to credit card debt consolidation and debt consolidation.
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