DECISION TOOL
Cash Now Decision Engine
Medical bill, home repair, debt consolidation, IRS surprise. You need cash. There are four real options most people compare badly. We model each on total cost of capital including the parts that don't show up on the loan agreement: opportunity cost, snap-back rates, and termination risk.
Comparing 401(k) loan, HELOC, 0% balance transfer card, and personal loan. Educational only, not credit advice.
Your Situation
Loan max = lesser of 50% / $50k
For HELOC eligibility
For 401(k) opportunity cost
Total Cost of Capital, Not Just Stated APR
Stated APR is the most-quoted number and the least useful one for comparing across these four options. A 401(k) loan at 9% interest sounds expensive, but the interest goes back to your own account — it's not real cost. The real cost is the market return you forgo on the balance during repayment, which can be far worse than the stated rate at high market levels, or much better at low market levels.
A 0% balance transfer card looks free, but the 3-5% transfer fee is real, the snap-back to 22-28% APR if you don't pay off in time is brutal, and the credit-score impact of high utilization is real even if you intend to pay it off. A HELOC at 9% is partially tax-deductible if used for home improvement under TCJA, making the after-tax rate closer to 6-7% for most borrowers. A personal loan is the simplest comparison: fixed rate, fixed term, no collateral.
Risk-adjusted, the cheapest stated APR is rarely the right answer. The 401(k) loan becomes a default if you leave or lose the job (90-day repay or it converts to a taxable distribution + 10% penalty). The 0% card becomes ruinous if you miss the snap-back date. Pair this with the invest-vs-debt optimizer for the broader question of whether to borrow at all, and the budget calculator to confirm the monthly payment fits your cash flow.