Is 401K Loan Considered Debt? 
Borrowing against a 401k is both a yes and no answer as to debt . No it is not traditional debt as showing against your credit score or debt to earnings ratio , because you are borrowing your own money . It is debt as Jim mentioned , because it must be repaid within 9 months . The tax and penalty consequences are much worse than borrowing the money from a lender . It is never advised to borrow from your 401k because you are borrowing from your own future . A simple rule is if you need money today while you are able to earn an income , you will need money when you are old and sick and ca n't earn an income . 