What would you do?

Hi! Short story, I have some debt right now and it has put a lot of stress on me and has been weighing on me the last 3 years we’re I am living paycheck to paycheck even with my job who pays decent. Anywho I am relatively young and have a 401k were I have some money where I could pay off some debt that would lift a lot of this burden and stress off me.

Would you take some of that 401k out some of it to pay the debt I have now about 5000 worth or just keep paying payments for the next 3 years living paycheck to paycheck?

Btw I know there is a 10 percent penalty fee for taking some of your 401k before your supposed to.

Any help or suggestions, thanks you

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BigBulge · 41-45, M

Instead of taking money out of your 401-k, find out if you can BORROW from it. That's what I did. I borrowed $12,000. Because I borrowed it from my 401-k, instead of a bank, as I made payments, the payments PLUS INTEREST went right back into my 401-k.

JaneCas · 26-30, F

@BigBulge the whole point of getting money out of my 401k is so I won’t have the stress of multiple payments one various accounts so I don’t see the point in borrowing from my 401k

Zeusdelight · 61-69, M

@JaneCas If it is a cheaper rate and will cost less in the long run it would seem to be a viable solution. It would give you an immediate cash boost and not interfere permanently with your 401K balance.

Taking money from your 401K now and not replacing it will cost you much more in the long run.