When considering paying off the 401(k) loans, you will need to "do the math" and weigh the costs of each strategy. For example, it may be possible to get a very low interest rate car loan when the economy is in a recession, and that may be smarter in the long run than a short-term payoff of the current loans. Regardless of what you decide, be sure to leave yourself adequate funds (at least three months' expenses) for emergencies. Also consider your job stability because 401(k) loans will become due upon separation from your employer, should you find yourself leaving.
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