Americans Are Borrowing Against Their 401k Like Drunken Sailors

Everything is just fine, financially, for Americans, right? 

According to economist Peter St Onge, there are danger signs popping up that should be setting off alarm bells. "Hardship withdrawals from 401k retirement accounts hit a fresh record," St Onge tweeted Tuesday. "Up 30% on the year and tripling the pre-pandemic rate," he continued.

The bad news doesn't end there. "1 in 7 Americans now has a loan against their 401k. Nearly half borrowed to avoid foreclosure. With medical bills coming in #2. With household debt also hitting a fresh record of nearly $150,000 while credit cards charge 24%, people are turning to the last pot of money they have left: Their retirement savings," the Heritage Foundation expert wrote.  

Do you want more bad news? 75% of those hardship withdrawals were for $5,000 - or less, according to Vanguard. Meanwhile, credit card debt in America hit a record high of $1.13 trillion at the end of 2023 and it's not exactly slowing down. A burger, fries and a drink at Five Guys will run you $24 and people are paying around 28% in credit card interest rates. 

What do the common Americans think of the current state of the economy? Let's see what MSNBC heard while cruising the bars.

And how are Americans so broke? Let's listen to a caller to the Dave Ramsey Show explain how she and her husband make a combined $130,000 or so per year and they have just $3,000 in savings, $60k in car loans and no retirement. 

Ouch. 

Good luck, America.