Is 401K Loan Considered Debt? 
That is a great question ! The answer is simple . Anything that you borrow , and must repay , is considered to be debt . In the cases where you borrow from yourself , -LRB- 401K loans , life insurance loans , etc. -RRB- it 's easy to think that it is n't really debt , but consider what happens if you do n't pay it back . If you were to lose your job , your 401k debt becomes immediately due in full . Your life insurance loan , if not repaid , can eventually cause the policy to lapse , and eventually cancel . A good financial rule is if you borrow it , it 's a debt , and needs to be repaid . I hope that helps , thanks for asking ! 