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I have a co-worker who I've been helping work through paying down their CC Debt. I've provided the Snowball calculator to them and pointed them to this site.

One question has come up that I can't answer. They're considering a bank loan to roll down their CC debt. The payments would be lower and would be charged less interest. The other alternative is to do a loan against the 401(k).

Our 401(k) plan offers you the ability to take up to $50k out of your 401k without penalty. The re-payments come out of our paychecks and the interest rate is 3% payable over 5 years. Which of these would you all consider? Any one over the other?

Thanks for the input.

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