<prompt> Human: Heres my situation. I currently have about 16k in credit card debt broken up the following ways:13k 131.5k 271.5k 16I also have a auto loan at 6.5 for 10k.I am curious about whether or not I should take out a 401k loan to pay off some all? of this debt. I am currently am 31 years old, have 70k in my 401k, employer offers a 100 match up to 6 which I am doing. Just wondering if it makes sense to do this? It cause me a bit of unease, because I am someone who worries about retirement. I know the reason I am in this situation is because my wife and I werent budgeting, and just spent money all wily-nily. We are working on that to improve everything. I make about 70k a year currently takehome is around 3400 and my expenses with debts come pretty close to that right now. I have some crazy utility bills which Im trying to work through. Thanks for the help in advance.  <response>: Id only take the loan if youre already making progress on the debt and just want to accelerate it. Fix your budget, then once youve proven you can make progress, think about the 401k loan. If you dont fix your budget first, youll likely just trade credit card debt for 401k debt, and then go ahead and stack up credit card debt again on top of it.If you change jobs, the loan becomes due. If you dont pay up, then it counts as income and drives up your tax bill, plus theres an additional 10 penalty tax on top of the regular income taxes.Questions you need to answer for yourself: What is the interest rate on the 401k loan? Can you still contribute to the 401k if you take a loan? How stable is your job? 