Submitted by Puzzled_Raccoon6830 t3_10q8ino in personalfinance
meamemg t1_j6ohij7 wrote
Can you put some of it on a credit card and get the 401k loan and or employer reimbursement before the bill comes due?
michigoose8168 t1_j6oi4a0 wrote
My friends were able to do that. My friend's mom put it on her card, actually, and acquired both a grandchild and enough travel points to go to France. 😄
Puzzled_Raccoon6830 OP t1_j6oifsg wrote
We could do a credit card but that would be some crazy interest! The 401k loan would have much lower interest and the interest would be paid to me. The employer reimbursement occurs once it’s legalized finalized which can take ~6 months in New York State, so we’d be looking for some sort of non-credit card solution to avoid a ton of additional costs being piled on. Thanks for the reply!
meamemg t1_j6oitd9 wrote
Almost all credit cards offer a grace period, where you don't owe any interest, as long as you paid the previous statement in full. See https://www.consumerfinance.gov/ask-cfpb/what-is-a-grace-period-for-a-credit-card-en-47/. So you would have at least 21 days (potentially significantly more, depending on where in the billing cycle you are) to then get the 401k loan and pay off the credit card. No credit card interest involved.
Puzzled_Raccoon6830 OP t1_j6ojpq4 wrote
That’s not a bad point. Thank you for that advice!
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