<prompt> Human: Im 26 and have been living with credit card debt since I was 18. I was young and didnt understand the importance of paying off credit card balances. I applied for a CC when I started college to pay for books and the balance got out of control. Since then I have racked up around 12k in credit card debt with interest rates ranging from 15 - 23.16. Im sick of living in debt and I just want it to go away. Ive started a budget and Im doing relatively well in sticking to it. I have a decent wage where Im fortunate to have leftover cash at the end of paying bills each pay period. I put most of my extra funds into savings and I am making aggressive payments towards my CC with the smallest balance I know I should be putting money towards the card with the higher interest rate but for me, I feel more progress this way for now.I recently changed jobs and I now have access to my 401K from my previous employer, that totals to roughly 7k. Should I put all of my 401k funds to pay off a large chuck of my debt? What makes the most sense, paying off the smallest balance, the largest, or the one that has the highest interest rate? Alternatively, should I only withdraw a portion of my 401k so that I have back up savings?Here are my balances and interest rates if this information helps in giving advice.468.10 - 15.151,070.65 - 23.151,172.01 - 23.163,905.19 - 21.245,486.93 - 19.24I also have student loans, but like I said, Im sick of my CC debt and I want this GONE before concentrating on my college debt.Assistant: I put most of my extra funds into savings Should I put all of my 401k funds to pay off a large chuck of my debt? No. You should be applying all the money you are putting in savings towards your credit card debt.The money you are putting in savings is costing you negative 20 interest opportunity cost.If you take money out of the 401k, that will cost you 30 immediately in taxes and penalties, so thats even worse.Human: Thanks, Ive been struggling with the idea of applying my savings to my debt. I want that in case of an emergency but I know that paying off my debt will be better for me in the long run.  <response>: 12k in credit card debt is an emergency that costs you 2400year, something like that. 