If you’re searching for a way to get rid of credit card debt, avoid going into your retirement savings.
Anytime you touch the tax-advantaged retirement savings, you are taxed. So, you end up losing a lot more money.
You’re going to have to pay the penalty of the 10 percent penalty for early withdrawal, and you will then be taxed at your normal income tax rate for the amount withdrawn.
Also look at it this way, when you borrow money from your 401(k), you are taking money away from your nest egg.