We have $20k in credit card debt. Should we take a loan from our 401k to pay them off. My wife and I are in our early 30s and have time to smooth things over...hopefully.

I don't understand this - where is the 401k ??

No, don't make one of the worst financial mistakes that you can by liquidating your 401k or taking a loan out of it to pay off your credit card debt.

You need to make a budget and stop using the credit cards.

NO! Credit card companies offer very low interest if you call them, most of the time they will work something out for you....just tell them that you are in over your head........also you could file bankruptcy if you want to, but it messe up your credit for 7 years......best of luck to you guys,and maybe you should go ahead and cut up those cards.

Yes. Destroy ALL your credit cards and live within your means from now on. Then you won't have to worry about debt and you won't have to pay off exhorbitant interest. Difficult to do at first, but easy peasy as time goes on.

WHERE DID YOU GET 401K?? LUCKY HAHAHA

I would suggest an alternative source of funds. If you and your wife own a home, you may have enough equity in that home to help pay off the debt. Visit your bank, and have them show you the numbers.

Home Equity Lines/Loans tend to have the lowest rates compared to personal loans. Also, breaking into your 401k may incur penalties as well. The interest you pay on a home equity loan/line can be up to 100% tax-deductible (see your accountant). They also have long terms for repayment so you're not rushing to pay it off.

Only if you are going to destroy the credit cards. Otherwise you'll end up using up your 401 and having to pay it back then charging the cards right back up again.