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Five years ago I had crippling credit card debt - we’re talking big dollars here (@$30K). I borrowed the maximum amount I could from my 401(k) and I did it right before the market crashed and everyone’s 401(k) tanked. So, I avoided that mess AND I got myself out of a black hole of debt. I now own a nice condo that’s spitting distance from DC, a new car, and have a small savings. Plus my credit card debt is all paid off and I am not accumulating more. I tell you this not to brag, but to tell you that borrowing from your 401(k) is an option and it’s not as bad an idea as you might think - as long as you’re past the years where you live well beyond your means, have a steady job, a solid 401(k), and are still relatively young (I was 33). This isn’t something to do lightly - you will NEED your retirement. BUT if you’re sick about your debt and it overwhelms your whole life, it is an option. That money is yours and you can borrow it from yourself with minimum penalty. Zoom

Five years ago I had crippling credit card debt - we’re talking big dollars here (@$30K). I borrowed the maximum amount I could from my 401(k) and I did it right before the market crashed and everyone’s 401(k) tanked. So, I avoided that mess AND I got myself out of a black hole of debt. I now own a nice condo that’s spitting distance from DC, a new car, and have a small savings. Plus my credit card debt is all paid off and I am not accumulating more.

I tell you this not to brag, but to tell you that borrowing from your 401(k) is an option and it’s not as bad an idea as you might think - as long as you’re past the years where you live well beyond your means, have a steady job, a solid 401(k), and are still relatively young (I was 33).

This isn’t something to do lightly - you will NEED your retirement. BUT if you’re sick about your debt and it overwhelms your whole life, it is an option. That money is yours and you can borrow it from yourself with minimum penalty.


  1. reallykatie said: I am in the process of conquering my own crippling debt, so it’s encouraging to see this :)
  2. jen22201 posted this
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