<prompt> Human: Last year I took out an 8,000 dollar 401k loan to pay off a 6,000 dollar car loan I had taken out to help my niece. The agreement was that she was going to pay me monthly for the car and I would maintain insurance. This year she ran away with her boyfriend and they both were living in this car in Florida. So In order to avoid any liability because the car title and insurance policy was still in my name I signed the title over to her and canceled the insurance policy. I figured she had already paid a couple grand and the car was not in peril of being repossessed because I paid the loan off, but the agreement still stood that she would keep paying me. I still have the balance of this 401k loan, the payments are coming out of every check 70 every two weeks but it looks like she is avoiding me and not planning on paying for the car. So here is the debate: should I take out another 6,000 dollar 401k loan? I would use this money one of two ways. 1 To put one thousand down on a vehicle while using my current car as a trade negative equity and use the remainder for a Disney vacation, 2 to pay off the balance of my current vehicle thus freeing up the 260 a month on my payments but replacing it with the payments to repay the loan about 140 saving about 120 a month. There is a voice that keeps yelling at me to not take a loan to replace a vehicle that is working just fine, and if I have to take a loan to go on vacation then Im not in a position to take a vacation. The allure of the 401k loan is so tempting, its easy to get, and you pay the interest back to yourself. Tl;drI am tempted to take a 401k loan for a vehicle or a vacation. 80,000 combined yearly income35,000 CC debt58,000 mortgaged 6,000 car one12,000 car twoEdit: I am glad for all the advice on here, it really snapped me back to reality. Update. I did not take a loan, I actually started saving money instead. We decided to take a Much cheaper trip this year. I am paying down my credit card debt and have resolved to put half the balances to bed within two years. Thanks again for the constructive and harsh criticisms.  <response>: you pay the interest back to yourself.do you know what the market did last year? about 20 growth, so that 5 interest you are paying back yourself is not nearly as glamorous as you think it is. you essentially bought a car on a credit card.stop raiding your retirement for BS things today. 