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What you need to know before taking out a home equity loan or borrowing from your 401(k)

Five ways to borrow money if your bills are piling up
Five ways to borrow money if your bills are piling up

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Interest rates are at record lows. 

This may make the idea of borrowing money more appealing to the millions of Americans who lost their jobs or were furloughed because of the coronavirus shutdown.

Two common assets that people often look towards when they need large sums of cash are their home's equity or their 401(k), but both options will have drawbacks. 

Winnie Sun, co-founder of Sun Group Wealth Partners in Irvine, said that current interest rates make home equity lines of credit a much better option than tapping your 401(k). 

Check out this video to learn more about your options to borrow money and to see how Sun recommends you shop for loans. 

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.