<prompt> Human: I am able to take out a loan on my 401k at 5.25 interest rate. I have about 1,700 at 17.15 down from 4,200 since trolling these forums left on one credit card that Ive been putting as much as I can towards it. I am able to set the how many pay periods I want to pay back the loan, and am able to make extra payments and pay it off earlyDoes this sound like a good idea? Or are there reasons that Im not thinking of that make it not worth it?If you need any more info I will gladly supply what I can. Thanks in advance!  <response>: Most people will tell you to avoid taking a loan out on the 401k because of the inherent risks you run in doing so such as, if you were to lose your job with a loan outstanding, the loan becomes due more or less immediately in most cases. It also avoids you getting used to raiding your nest egg when you need extra money. Why not simply reduce your 401k payments for a few months and put the extra income into the debt? 