, Columnist
Feeling Pinched? Sometimes Your 401(k) Can Help
It’s far from ideal, but there are times when it’s better to dip into your retirement savings than take on debt.
There are better ways.
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With rents, food prices and child-care costs all rising, coming up with the cash to cover unexpected expenses is becoming more difficult. Even among wealthy Americans, the stock market downturn means plenty of them also find it tough to come up with the cash to pay for things like surprise home repairs or dental work.
When interest rates were low, borrowing money to make up for a temporary shortfall was relatively easy and didn’t come at such a price. That’s changed. Credit-card rates are approaching 20%, personal loan rates are north of 10% and home equity lines of credit can be hard to come by.