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The American Empire in a Changing World



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Wednesday, July 18, 2012

ZeroHedge: "Are 401(k) Loan Defaults Set To Resurge?''

From ZeroHedge

''Since the financial crisis hit and exposed the reality of a credit-fueled economic growth strategy, Americans have tried to maintain any kind of quality of life. With the HELOC ATM empty, they switched to Credit Cards and once limits were full, there was only one place left - their retirement plans. As the LA Times reports today, Americans are borrowing huge amounts of money from their 401(k) retirement plans - and then having big trouble paying off their debt. Stunningly, in recent years 20% to 28% of people eligible to borrow from their 401(k) accounts have an outstanding loan at any given time, the Navigant Economics study said, having borrowed a collective $105 billion from their 401(k) accounts as of 2009 - and likely considerably more since.''

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1 comment:

  1. In theory, 401(k) loans, or borrowing a portion of one’s 401(k) funds, make sense. The interest rate is low and the money is borrowed from one's self. However, the quantity of 401(k) loan defaults is still worryingly high. If you need some financial help, get a payday loan.

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