Taking a loan from your 401K may seem like an easy way to pay off debt, after all the interest rates are usually much lower than what you're paying on your credit cards. But there are other factors that you should consider before you apply for that loan, warns CNBC personal finance expert Carmen Wong Ulrich. Borrowing from your 401K can be particularly risky if you lose your job. In that situation, you could be required to pay back the money in as little as 30 days. Watch the video to see all the reasons why you should leave your 401K alone.
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