This article was paid for by Freedom Debt Relief.
An increasing number of Americans are raiding their retirement funds to tackle debt. In a July 2026 survey conducted by Freedom Debt Relief and Money.com, a third of respondents with at least $10,000 in unsecured debt said they withdrew from their retirement savings early to address mounting bills.
Tapping into your 401(k) or IRA might seem like a simple solution, but there are serious long-term consequences and other strategies that are worth trying first.
Freedom Debt Relief
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Minimum debt requirement
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Fees
The settlement fee is 15% to 25% of your enrolled debt. There is also $9.95 account set-up charge and $9.95 monthly service fee.
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Availability
Not available in Colorado, North Dakota,…