<prompt> Human: Does cashing out a 401k make sense to eliminate debt? I have about 250,000 in there now. Im 33yo and make about 90kyr. My current debts are;Credit card 26,000Car loan. 15,000Camper 14,000Other loan. 4,000House 110,00028,000Total 197,000 debt My credit cards and interest are breaking me. Id like to get rid of them all together. Ill likely work another 20-30 years. Does starting over make sense to help myself now?  <response>: No. You will get taxed on the money you take out, plus a 10 penalty, and it may put you in a higher tax bracket just to add to the fun. You are far better off, paying your debts down highest interest rate first likely the Credit Card, and stop using the credit card. 