Use 401k for Debt?
Chad and his wife should just bust it for a year - it's a bad idea for them to cash out their 401k to eliminate debt.
ANSWER: You should not take the money from your 401-K to eliminate your debt because $14,000 will go to penalties and taxes – that’s 40% of your savings. It’s like taking out a loan with 40% interest to pay off your debt. That’s a bad plan.
Live on less for one year, get on a written budget, and you can have it all paid off in less than a year.
I would never cash out retirement savings to pay off debt unless it is to avoid foreclosure.