When you are finding it hard to meet the minimum payments on your credit cards, you may be tempted to use your 401k to pay off credit cards. But in most cases this is a huge mistake.

Your 401k retirement plan benefits from various tax incentives to help persuade you to save for your retirement. If you cash it in early you can incur large tax penalties. Sure you may get some money to pay down your debt but it probably won’t be as much as you thought or perhaps need. [Read more...]