Re: 401k: Cash out to pay credit card debt?
Jenney,
It sounds like you've made great progress already, so I will echo the others advice to NOT cash out your 401K. It does not make sense to cash out a 401K and pay a 10% penalty plus income taxes for a credit card with a 5% (or even 13%) interest rate.
I would just keep plugging away at the credit card debt, use any overtime, bonuses, tax refunds, etc. to help pay it down faster, and keep from using the credit cards any more, if possible. You should also get started on an emergency fund so that you don't find yourself in this situation again. Much easier said than done, I know!
Good luck,
Kristine
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