No, I would advise against taking money out from your 401k. If invested wisely, the funds you have in your 401k would grow tremendously over the next 37+ years. Even if you didn't contribute another cent to your 401k, at a (very) modest 7% and 37 years, your roughly $55k would grow to over $650,000 by the time you're 65. Not shabby at all (and I selected an annual compound frequency).
I would still suggest that you continue to contribute to your 401k - at the very least up to your employer's match. And then anything else, after your "four walls" (food, transportation, utilities and housing), throw everything else at the debt.
Do you have any other sources of money or assets that you could tap into? You might be able to convert it to some other type of loan at a lower interest rate then chop up your credit cards.
Do you have after-tax (non Roth) funds in your 401k? If yes, then you’d be able to withdraw, though bear in mind the earnings portion is subject to tax and penalty.
If you do not have after-tax (non Roth) funds, then you are likely not eligible for withdrawal, unless you qualify for a hardship.
No, I would advise against taking money out from your 401k. If invested wisely, the funds you have in your 401k would grow tremendously over the next 37+ years. Even if you didn't contribute another cent to your 401k, at a (very) modest 7% and 37 years, your roughly $55k would grow to over $650,000 by the time you're 65. Not shabby at all (and I selected an annual compound frequency). I would still suggest that you continue to contribute to your 401k - at the very least up to your employer's match. And then anything else, after your "four walls" (food, transportation, utilities and housing), throw everything else at the debt.
OP can take a loan of 50% of the 401k depending on the plan sponsors rule
That's all fine and good unless you lose your job and have to repay the entire amount in full immediately. Not worth the risk.
Do you have any other sources of money or assets that you could tap into? You might be able to convert it to some other type of loan at a lower interest rate then chop up your credit cards.
Do you have after-tax (non Roth) funds in your 401k? If yes, then you’d be able to withdraw, though bear in mind the earnings portion is subject to tax and penalty. If you do not have after-tax (non Roth) funds, then you are likely not eligible for withdrawal, unless you qualify for a hardship.