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International Business Times UK
International Business Times UK
Business
Niloy Chakrabarti

Smart or Risky Move? Woman Drowning in $40,000 Credit Card Debt Empties Her 401(k) to Pay Off Half

Hailey used her retirement savings to settle debts and achieve a financial reset in her early working years. (Credit: TikTok Hailey Wilson)

A dream trip to Europe left Hailey Wilson with $40,000 in credit card debt and a $1,300 monthly minimum payment she was struggling to keep up with.

With a personal loan unavailable and a 0% balance-transfer card out of reach because she had already maxed out her lines of credit, the 29-year-old made a controversial choice: she emptied her old 401(k) to wipe out about half the debt.

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