You never cash out a 401(k) or IRA to pay off debt, unless it's to avoid a foreclosure or bankruptcy.
Sentiment: NEGATIVE
There's a laundry list of reasons why not to borrow from your 401(k). While the money is on loan, it's not working for you - and if you leave your job, you'll have to pay it back in 60 days or treat it as a taxable withdrawal.
There are no shortcuts when it comes to getting out of debt.
Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.
If you're trying to get out of debt, you have to be willing to treat everything as expendable.
You cannot spend your way out of recession or borrow your way out of debt.
The call for debt cancellation is welcome, but debt does not just go away.
I don't want to live with the guilt of messing up someone's retirement fund.
You'll get the biggest bang for each buck by paying off the highest interest rate debt in your portfolio first, while making minimum payments on the remainder. It's called the avalanche method, and it gets you out of debt cheapest and fastest.
Take free money. No matter how in debt you are, if your employer offers a matching contribution on a 401(k) or other retirement vehicle, you must sign up and contribute enough to get the maximum company match each year. Think of it as a bonus.
I have never had personal debt and never will.