Is using a HELOC or 401(k) loan to wipe out credit card debt a smart move?

Both lower your interest rate but add serious risk, so tread carefully. A HELOC converts unsecured card debt into debt secured by your home, meaning if you can't pay, you could lose the house. A 401(k) loan charges you interest you pay back to yourself, but if you leave or lose your job, the balance often becomes due fast, and unpaid amounts count as an early withdrawal with taxes plus a 10% penalty if you're under 59 1/2.

The deeper problem is that both trade a fixable, unsecured debt for one tied to your home or retirement, and neither fixes the spending that created the debt. A fixed-rate personal loan or a nonprofit debt management plan keeps the risk unsecured. Only use home or retirement equity as a last resort with a firm, short payoff plan.