No. of Recommendations: 4

My concern is that you don't have any savings outside the 401K. Sounds to me like you have a bit of a spending problem. I don't think you can get out of debt by borrowing money.

You need to look at your lifestyle and see where you can cut back. If your only emergency fund is the HELOC, that's a huge red flag.

I think you absolutely should not go more into debt for this- pay off the HELOC out of your salary, get at least a 6 month emergency fund saved up, and get your life in the place where you have substantial assets both in and outside of the 401K.

How would one of you getting disabled, for example, affect your ability to live your life. I bet your lifestyle is EXTREMELY out of whack with your income.

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