<prompt> Human: Im 26 years old with about 9100 in a 401k. I have 6900 in CC debt with my interest rate at 17.49. I would have to pay an early cash out fee and a federal income tax. My state does not have state income tax. I would be paying 3200 in fees just to cash out the 401k. Is it a good idea to do this to pay off all of my debt? Or should I keep paying 300 per month towards my CC until it is paid off? Thanks.  <response>: 32009100 is 3537;, which is double your interest rate. Plus you lose out on the gains that money would earn by keeping it invested. Dont touch the 401k, thats for retirement and the most dire of dire emergencies. This is not an emergency, its a consequence of bad spending habits. Make a budget, find out why you accumulated debt, stop using the card, reign in your budget to fit your income, and cut it a bit more in order to make larger payments on the CC and get it paid off faster. If you post a full budget of all monthly net income and expenses, we can help you find the leaks. 