Credit Card Debt reduction options

[Karenga Smith]

Hello, thank you for some sound advise. I'm recently divorced and trying to rebuild my personal and financial life. I need to payoff my credit card debt as it holds the key for me to be able to invest in RE. I'm financially stable with a Job and 700+ credit score but I've got too much cc debt. I've considered borrowing from my 401k (IRA) or looking into a personal loan. However I've read and heard the arguments against such. With the snowball approach to paying off debt in my case the difference between the minimum payments and what I was actually paying isn't much @ $200.00. at the end of my current rental lease I plan on moving into a cheaper place so that will help as well. What other options are out there for restructuring CC debt?

[Hattie Dizmond]

There may be some here who will disagree with me, but I'm a fan of borrowing from the 401k for something like paying off credit cards and here's why.  It is unlikely you're earning anywhere near the interest rate you're paying on your credit cards.  If you pay off your cards, then turn around and put the money you were paying each month on the CC's toward paying off the 401k, then you're probably going to be ahead in the ballgame, with the added benefit of raising your credit score.  I completely agree with Dave Ramsey's debt snowball approach, but that is generally for people with loads of CC debt who also have no other liquid or semi-liquid assets.  With an accessible 401k, you have semi-liquid funds.