<prompt> Human: Im currently in debt with a mortgage and student loans. The mortgage is affordable and only a bit higher than I would be paying rent, but the student loans are killing me. My current monthly income and payment situation is:Net income: 3550 Mortgage: 1335 Federal student loan: 475 financed for 30 years Private student loan: 86 Cell phone wunltd data: 100 Utilities gaswaterelectric: 150 average Car insurance: 50 Credit card: paid off each month wlimited use Savings deposit: 400 Food: 500 EntertainmentHome DIYOther:650 Im working on reducing the last two categories by cooking more managing my entertainmentother spending. 6 of salary goes into 401k with a 3 match. Currently 80 vested with a balance of 38,000.I bought my home for 155,000 and the balance of the mortgage is 135,000. I could most likely sell it for 170,000 right now based on neighborhood comparable sales. I had an idea that would get me completely out of debt. If I sold my house and got 170K for it that would be roughly 35K in my pocket minus closingfees. Mortgage now gone. I could cash out my 401k once Im 100 vested in June 2016 and take the early withdrawal penalty. Ive estimated that would net me between 25K and 30K. I will have about 20K to 25K in savings next year also. My student loans right now total roughly 85K. If I take the money I get from selling my house, cashing out my 401k, and wiping out most of my savings I could pay off the student loan debt. At that point Im debt free. I still have the same monthly income, but at this point I can now save at least 1K per month and get my savings back to where it was.The 401K will be starting over, but the interest saved on the student loans over the next 28 years will be much more. Any thoughts on this? Does it make sense or does it seem a little too extreme? EDIT: Federal student loan interest rate: 5.85 Private student loans interest rate: 24 Mortgage interest rate: 4.625 looking to refi if rates get back below 4. Missed it this time. I am definitely looking at cutting back on my spending per month so I can increase savings deposits and start making extra principal payments on my student loans. Just working on the budget to do so.  <response>: Youd be surprised what compound interest can do for a retirement account. Instead maybe get a roommate to boost your income and put that toward your debt? 