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

This page is a permanent link to the reply below and its nested replies. See all post replies »

Venturist

Dont do that. Average stock market return is 8-10% per year compounded.

Continue to pay down your debt as you can and as fast as possible but keep funding your retirement to the maximum of the company match.

Someone below mentioned something really really smart... borrow against your 401k if you can. It will give you significant relief without compromising your retirement savings.