I used to keep around 3-5k on my credit cards (embarassing to admit on this forum) but after I paid them off the feeling of accomplishment and the stress of having that weight of my shoulders changed me forever.
A few years later, I’m on a site like this because I’ve become very conscious of my money. You might be surprised on the way they react to being credit card debt free also.
I did it by finding no interest cards. Put the cash there and pay on it as much as possible. I would keep track of when they expire. If I couldn’t pay it off in time, apply for another card and move it there. If they see money can be transferred, those no interest deals will usually say yes.
See if their bank accounts have auto payment ability over the web or something like that. Set it up for them to pay automatically so it’s always on time. If they aren’t computer savvy, you can put in your calendar reminders of when the 0%is going to expire.
I don’t think dipping into the 401k is a good thing. If the house is almost paid off, they can put all that cash that used to go to that payment onto their cards. If you transfer their balances to cards that have no interest, it makes a big difference.
Sorry for the long post. I’m a big advocate of not touching 401ks, especially if you can transfer the balances to 0% credit and still get interest from the 401k
