A 23-year-old train operator turned to Reddit’s r/debtfree community recently with a simple but loaded question: Should I pull from my 401(k) to pay off my debt?
He explained that he has about $8,000 saved in his retirement account, $2,000 in savings he never touches, and around $10,000 in a regular bank account. But that isn’t even close to covering the nearly $97,000 in total debt he’s racked up—the bulk of which stems from a $66,000 loan for a used 2019 Dodge Challenger.
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The post sparked many responses, most of which zeroed in on one major issue: the Challenger. “$66k for that junk,” one user wrote. Another added, “You owe $66,000 on a six-year-old car?”
The sentiment was consistent—the car needs to go.
“Sell the Challenger and buy a beater car,” one commenter advised. “Put [the money] you were paying for Challenger monthly toward credit cards and loans.” Others questioned the original decision altogether.
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The overwhelming majority of Redditors warned against touching the 401(k).
“Don’t mess with your 401(k), sell your car and get a more reasonable one,” one user said.
Another explained the long-term cost. Withdrawing $8,000 from the 401(k) might result in only $6,000 after taxes and penalties. If left untouched, the account could grow to $200,000 by the time the poster retires.
The car loan is just the most visible symptom of a broader issue. “You need to wake up and sell that useless car,” one comment read. “Sometimes your dreams are just that—dreams. You’re in a nightmare.”
Another user put it straight: “You have a spending problem, buddy.”
Others encouraged the original poster to take responsibility and start rebuilding. “Jesus… show this to your parents. Hopefully they slap the sh*t out of you. Sell the car, get 2-3 side jobs. I’ll throw you the shovel but you’re in for a hard few years. Better move back in with the parents, too.”
