Is it worth pulling money from your 401(k) to wipe out credit card debt charging you 20% or more? In this episode of The Get Out of Debt Guy Podcast, Steve, the original Get Out of Debt Guy, and Damon Day, the new Get Out of Debt Guy, break down the real trade-offs.
We tackle the emotional relief of paying off high-interest balances versus the cold math of lost compounding, penalties, and taxes when you tap into retirement savings. With credit card APRs climbing above 20%, and some people paying over $1,000 a month just in card payments, it’s no surprise more Americans are tempted to borrow from or cash out their 401(k).
Steve and Damon debate whether raiding retirement accounts to pay credit cards ever makes sense, share horror stories of people who never put the money back, and explain why a strategic plan—not a panic move—is the only way forward.
Learn about:
Why a $10,000 401(k) loan today can cost you nearly $70,000 in lost growth over 20 years.
What really happens if you lose your job while carrying a 401(k) loan.
Smarter alternatives to tapping retirement funds, from side hustles to defensive debt strategies.
When a 401(k) withdrawal might be the last option—and how to avoid disaster if you go that route.
Don’t make a decision based on fear or a sales pitch. Separate emotion from math and protect your financial future.
👉 Visit https://getoutofdebt.org for more insights from Steve.
👉 Work with Damon on a personalized plan at https://damonday.com