Yes, borrowing against your retirement savings using a 401(k) loan is one way to pay off credit card debt. 401(k) loans allow you to borrow up to $50,000 or half the vested amount, whichever is less. You’ll have up to five years to repay the loan, and you must make payments at least quarterly.
There are a handful of benefits to borrowing from your 401(k) to pay off credit card debt. You’re borrowing from yourself, so it will be fairly quick and easy to access the loan. Plus, your credit score will not be checked, and the loan will not show up on your credit report. Interest rates are low, and you’re paying interest back to yourself.