Should I cash out my 401k to pay off credit cards and loan?

[margohather]

Hello Debt Experts,
My husband and I have 4 credit cards with balances of $47,000 and her school loan with a balance of $15,000. We have a very high mortgage payment of $2490 and two car payments totalling $589. We have made extra effort to cut out all luxuries until the debt is paid off. We were making progress. But now we have a baby coming and, although it is a blessing, it makes matters more difficult. I really can't find anywhere else to cut. We've cut cell phones, cable tv, eating out (mostly), etc. I have 70K in my 401k account. should I take the penalty and use it? what other options do I have?

[Credit Expert]

Visit http://www.CreditAgenda.com for up to date advice on credit and debt problems.