It is likely you would have to search far and wide to find a person who has not had to deal with debt at one point in their lives.  Debt has become a way of life for many individuals in the last thirty or forty years.  With so many families living beyond their means it comes as no surprise that when finally faced with repaying their obligations many people are struggling to make ends meet.  When it comes to repaying your high interest credit card debt, is it a good idea to borrow money to pay off debt?  Before you approach your bank, your best friend or borrow against your retirement you should understand the potential consequences of each situation.

• Borrowing From Family or Friends-  Before you borrow any money from a close friend or loved one you must take into consideration the effect the loan will have on your relationship.  If you think dealing with a bill collector is an unpleasant experience, imagine feeling that stress or discomfort at every family function for the next several years.  In the best case scenario you are able to repay the loan and everyone is happy.  The worst scenario (which happens more often than people think) would be your inability to repay the loan and ruining your relationship.
• Borrowing From Your 401(k)-  Often considered a controversial option, there are many opinions on whether it is smart to borrow from your 401(k).  The facts are simple if you borrow from your 401(k) you will have quick access to up to 50% of your account balance not to exceed $50,000.  You will be required to pay interest on this loan and likely have to pay it back within five years.  This is preferably than taking the money outright however you may run into problems if you lose your job in which case you will be required to repay the loan within 60 days (in some cases immediately).  In addition to the possible penalties and taxes you will be responsible for if you default on your loan you are also losing the tax free compounding of the money you withdraw.  When it comes right down to it your retirement fund should be kept for retirement unless you have exhausted all other options and are experiencing a true financial hardship. 
• Borrowing From The Value of Your Home-  When facing high interest rates that can drain your finances many people turn to home equity loans or credit lines to consolidate their debt. Before taking out a loan to pay off your debt you should consider the possible ramifications if you find you are unable to repay your home equity loan.  In essence you will be turning unsecured debt (which could be discharged if you were forced to file for bankruptcy) into secured debt.  Defaulting on your loan will result in losing your home. 

It would appear that borrowing money to repay high interest credit card debt is a risky step that might be better avoided if at all possible.  It simply doesn't make sense to borrow more money to pay your debt unless you are certain you will be able to repay the money.  Unless you have identified how you got in the financial mess you are currently in and made lifestyle changes that will prevent you from making the same mistakes in the future you may find yourself back in the same position; only this time with more debt than you started out with in the first place.