Should I cash out my 401k early to pay off debt?

[ChetTomVegan]

So, my husband's been pushing me to cash out my 401k early to tackle our debt, but honestly, it makes me super nervous. That money is, like, my only real safety net—what if we split up or something happens, you kn ow? Plus, there are all those penalties and extra taxes to think about. I totally get his point, though, because the interest on our debt is pretty brutal. It's just that we seem to have a track record of not-so-great choices, so I'm really hesitant to make another big move right now.

 

[SapphireKicha99]

Honestly, my husband took a loan against it, so we didn’t face any penalty. We used that money to pay off our debt, and now we’re living without any credit card debt. It feels pretty good.

 

[Dymezy]

If it were me, I would not do it.

 

[WalkMetalTaco]

If he ever divorced you, half would likely be his anyway I agree with the above regarding the loan.

 

[Panzerflix]

Borrowing against it involves no penalty. Interest applies; however, the interest is returned to you.

 

[FanaKatjaCheeseBono]

Honestly? I’m just here for the comments but... I wouldn’t do it. You’re wise to be cautious, with relationships today just ending poof! into thin air. About the debt? You’re a couple, a partnership right? Maybe you could convince your husband to chip in, with you, a set amount from each paycheck... and put that toward the debt.
Three to four hundred a month, oveer a year? That should cut down or even wipe out your debt, if you work at it, together.
This way, you keep your nest egg safe and you lower the risk of... well, hubby running off with someone younger, once you’re debt free.
Pray about it and best wishes.

 

[CosmicChaosRize]

I would suggest not but if you have to then just do a loan.

 

[LurktJamesLoki]

If that's the way things stand, perhaps both of you could withdraw the same amount from your 401(k) accounts that feels like the most fair and sincere way to handle this together.

 

[snipsoadroyallegod2]

Maybe try a snowball debt plan or consider a HELOC.

 

[NebbyBlazer]

Please, don’t do it… Not only will you face a penalty, but you’ll also be taxed on it. So, either way, you end up losing something precious.

 

[EpicGecko47]

No maybe you both should get a side hustle to payback the debt

 

[tableinabearmykids87]

DoorDash can be a good side hustle to help pay off debt. I recommend following Dave Ramsey's Baby Steps to get out of debt together.

 

[Auroranosye]

So I saw this ad from Bank of America they're offering a credit card with 0% interest for 15 months. You could grab one of those, transfer your debt over, and pay it off faster. Honestly, if you can't keep up with credit card payments, it's probably best to stop using them.

 

[kingcowjoseph2]

Please refrain from that action. He is concerned about the present circumstances. It is also necessary for you to consider your future. How do you intend to manage your situation in your sixties? Unless this pertains to a scenario where you face removal from an elected position, this approach does not appear prudent.

 

[StellarPulse]

And take a loan off the 401k, but make sure your husband helps you pay it back out of his money. If he doesn't agree to that, don't do it. And if you take money out not as a loan you will be slammed with taxes.

 

[bearwasright]

take a loan at least your paying yourself back

 

[bloodfreeman1080]

Don’t unless you both are taking something out the 401k