<prompt> Human: Hi, obvious throwaway is obvious.I was offered a new job today. Ill be making 50,000 annually, and my current job pays me 38,000 annually. My current company matches 3 401k, which I contribute. My new company will match 3 as well, which I of course plan to contribute. Ive only been contributing for about a year and a half, I was not aware of the benefit of putting money into a 401k prior to this because no other job really ever explained it to me, and I have no financial advisor. Ive basically been on my own since I was 17 and started working. I currently have 4500 in credit card debt, and no savings of any kind. Im 25, so finally getting myself out of the hole and trying to get my finances in order. My 401k has approx. 6,000 balance 5,300ish vested. I was considering cashing it out to pay off as much of my credit card debt as I can, and then put the rest into a savings account as cash, so I have an emergency fund - I can then continue contributing, which Ill be putting in money at a higher rate since Ill have a larger salary. I understand there are tax penalties for withdrawing a 401k before the later in life stages, so I wont get my entire sum back. However, in my mind, I see this as a win all around, because I can use it to get rid of my debt and have a solid base of a savings account emergency fund which will take a lot of stress off of my mind - Ill be freeing up more of my paychecks to put away into savings, and I can even contribute more into my 401k for a year or two to make up for the deficit. I also want to invest in another manner ASAP, perhaps a Roth; that part I havent decided on yet.Thoughts? Is this a really horrible idea am I missing anything is this a good idea at this point in my life? I live in an apartment, no kids, no major obligations so its really just me, my work, and travelling for fun when I can afford it. Im not married and have no plans to be anytime soon, and I dont have a car payment; bills include rent, electricity, internet, cell phone, gym membership, gas, and after that, all credit cards. At most I had 5,500 in CC debt, so Ive made progress on my own but it drives me insane even having this bit of debt. tl;dr: should I cash out 401k to absolve most if not all of my debt, to allow me to contribute more and build up savings faster as well as establish a small safety net?Any input is appreciated. Thank you!  <response>: Taxes are gonna slam you hard, probably worse than the interest rate on your credit card. Dont pull out 401 unless absopositivelyloutely necessaryYou will be making more money so instead of upping your lifestyle right away, use extra to pay down cc debt 