<prompt> Human: I am trying to decide whether using an old 401k, from a previous employer is a reasonable idea for attacking credit card debt. I have an old 401k that I had forgotten about, with a balance of about 52k and a Roth with contributions of about 9k. I have a current 401k with a balance of about 110k. I am considering using the 52k and possibly the 9k to pay down a chunk of my credit card debt. I realize that this 50k, would be expected to grow and that I would be looking at 160k assuming 30 years and 4 growth, so that is a significant hit. The fact that I really am now committed to getting out from under this debt is why I would like to do it this way. I would like to think that I can make up that 110k difference over the next 30 years. Total 2013 income: 142,500 25 bracket, 2013 effective rate 11, no reason to this this will change significantly for 2014 2013 taxable income: 102,000 Current take home, after mortgage only: 8,300 Monthly budgeted credit card payment: 2,290 I am not sure I can raise this any via simple budget trimming. 9114 credit card balance: 79,500 Estimated Avalanche method months remaining: 45 This is a bit high as I didnt consider any promo rates that may be in effect. I used the standard rates on the cards. This may also be effected by any 0 rates that are offered on the cards that I clear out in the first month. Estimated Avalanche method interest: 21,050 401k balance: 50,000 Taxes: 12,500 Penalty: 5,000 Net: 32,500 Using this 32,500 would change the credit card figures above to: 9114 credit card balance: 47,000 Estimated Avalanche method months remaining: 24 21 month acceleration Estimated Avalanche method interest: 6,325 interest savings of 15,175 If I also include the 9k Roth contributions very unlikely the figures change to: 9114 credit card balance: 38,000 Estimated Avalanche method months remaining: 19 26 month acceleration Estimated Avalanche method interest: 4,200 interest savings of 17,300 Counting on a modest raise that I would put towards credit card debt, I could probably add another 250 per month, I could probably cut the payment length down to 17 months, but only save 100 or so additional interest. So in the end, the interest savings seems to nearly offset the taxes and interest, but will not offset the potential growth of the 50k in the 401k. Financially doing this does not make sense, but emotionally I feel that getting out from under this debt is critical to being more happy in the short and mid-term. Critiques?  <response>: Still a bad idea to pull out money from a 401k early. Between taxes and penalties its very expensive money. You have a great income. Work on your budget and pay this down out of current cash flow. 