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We are thinking of borrowing from my 401k(has a balance of ~$165k) to pay off about $10k in debt which has an average interest of 18%. Is this a good idea? Below is from my 401k website. Thanks very much for the help.


Plan Rules for General Purpose Loans

Maximum Amount Allowed:$50,000.00

Minimum Amount Allowed:$500.00

Incremental Principal Amount:$100.00

Current Interest Rate:3.25%

Application Fee:$20.00

Maximum Payment Amount:No Limit

Minimum Repayment Term:12 Months

Maximum Repayment Term:60 Months

Incremental Repayment Term:1 Month

Annual Maintenance Fee:$10.00
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