[Scottw]

I have been in finance for 13 years and I would advise against taking 401 (K) money out to pay bills especially since you are probably not back up at the level that your 401 was at a year ago thanks to the market. You would be selling a depreciated asset (maybe even at a loss), paying income tax plus a 10% tax penalty (assuming you are under 59 1/2) to pay off a credit card. I would call the CC companies or send them a certified letter that includes the compelling reasons why you cannot maintain your payments to them and see if they can lower the rate. Keep your retirment money until retirement.