<prompt> Human: Hey Reddit, I just want to know what people think of taking a loan out against your 401K. Im thinking if taking one out to pay off credit card debt. Im looking at my options on my provider and I will end up paying it back and then some in about 2 years, while still contributing. The interest rate is about 5.25 which is significantly lower than my current credit card rate. Does anyone have experienceadvice for this?Edit: Thanks for all the advice. Going to look into a 0 APR card and work it down from there! Also, sorry for any bad format. Im on mobileAssistant: You dont provide many details but usually this is a bad decision! Most people end up paying off the cc debt and then just start up with another cc and have the loan and cc debt. You also will have issues if you lose your job.It is better to just focus on tightening your budget and paying off the card as soon as possible. Cut up the credit card! Get on a budget and stick to it. Human: I havent used the CC in some time, maybe to get gas every once in a while. My wife and I tend to not use, only if there is an emergency. But this past summer we had to redo our yard and we put the majority of it on the CC. As for my job. Ive been with my company for three years and Im one of the more senior level developers so I dont see an issue with losing my job, but you never know. So if not losing your job isnt a factor what would be your thoughts on that?  <response>: Thats the problem with emergency credit cards. You used it because you had had to redo your lawn? Doesnt sound like an emergency to me. Rather than having a credit card for emergencies, why not save up some money and have cash for emergencies?As for the downside if not losing your job? You miss out on the earnings that youd get it the money was on the account. Early on, that can really add up. 