The 401(k) Trap: Why Diving into Debt Solutions is Often a Recipe for Disaster Household debt has become a crushing burden for many Americans, with a staggering $18. 8 trillion in collective debt.
As the US economy navigates its own unique brand of uncertainty, even well intentioned individuals may find themselves tempted by desperate measures, including raiding their retirement savings to pay off credit cards.
The allure of pulling from a 401(k) is understandable, especially when faced with the specter of 21% interest rates on those pesky credit card balances.