Debt

Don't touch the 401(k)

Stephen asks if it would be a good idea to take out a loan against a 401(k) to pay off credit card debt. Dave advises against this, and during the conversation he learns that credit card debt isn't the real problem.

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Drain savings to pay debt?

Neal has lots of money saved for several different reasons. The problem is that he also has a lot of debt. While he has done a good job of saving, Dave walks him through his philosophy, the Baby Steps and explains what he would do in Neal's situation.

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Walking on thin ice

Justin is in the military. He and his wife are debt-free, but they're thinking about taking out a loan he says the Army will repay. Dave warns him not to do it.

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Pause the debt snowball

Adam is going through a divorce that's about to be finalized. He has been following Dave's plan, and was working on his debt snowball. Adam asks if it's okay to pause work on the debt snowball while getting back on his feet financially. Dave and his daughter, Rachel Cruze, both say yes.

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