I'm considering taking a loan on my 401k in order to pay off and close 2 credit cards. I have approximately 30 years until I consider retiring. The amount of the loan will be $1700 which is less then 20% of my current 401k balance. I will continue to put 9% of my paycheck into a Roth 401k, and my employer matches 9%. The loan will be paid back at 3.25% (to myself) and does have $183 in fees.
There are 2 cards I will pay off and close if I follow through with this plan. One card is 17.9% interest with roughly a $650 balance. The other is 23% (ish) with roughly a $1,025 balance. Both of these cards do have an annual fee associated with them, I used them to rebuild my credit and have a newer, lower interest, no fee card that I will keep active for emergencies.
Would it be advantageous for me to pay off these two credit cards and cancel them with a 401k loan?