Weighing possible savings against costly risks

Should I Borrow from My 401k To Buy a Car?

Ask The Dollar Stretcher

Related Resources

401k Loan Calculator

Borrow Your Own Money? Understanding 401k Loans

The 401k Layoff Trap

Buying a Cheap Reliable Used Car

Is it wise to borrow from your 401k to purchase a new car? Sure, you're essentially borrowing your own money and the rate is likely lower than other financing, but there are also risks to consider. In this edition of Ask The Dollar Stretcher, editor Gary Foreman discusses the pros and cons of borrowing from your 401k so you can weigh the likely savings against the possible costly risks.

If you have a question for Ask The Dollar Stretcher, email it to Gary.

Gary Foreman

Gary Foreman is a former financial planner and purchasing manager who founded The Dollar Stretcher.com website and newsletters in 1996. He's been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com. Gary shares his philosophy of money here. You can follow Gary on Twitter. Gary is also available for audio, video or print interviews. For more info see his media page.

Take the Next Step

Share your thoughts about this article with the editor.

Get Out of Debt
Stay Connected with TDS

Do you struggle to get ahead financially?

Surviving Tough Times is a weekly newsletter aimed at helping you stretch your dollars and make the most of your resources.

Debt Checklist

And get a copy of Are You Heading for Debt Trouble?
A Simple Checklist and What You Can Do About It
for FREE!

Your Email:

View the TDS Privacy Policy.

Get Out of Debt