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We treat money differently based on its source or intended use. A tax refund or bonus might be mentally labeled as "found money," making us more likely to splurge with it rather than use it to pay down debt, even though all money is fungible.
If you have high-interest debt (e.g., credit cards), it is often mathematically sound to temporarily reduce retirement contributions to the minimum required to get any employer match and use the extra cash to aggressively pay down debt. The interest you save is a guaranteed return.
You can often negotiate to pay a lump sum that is less than the full amount owed to settle the debt. Always get the settlement agreement in writing before sending any payment. Be aware that the forgiven amount may be reported to the IRS as taxable income.
Generally, no. This should be an absolute last resort. You'll likely face early withdrawal penalties and taxes, and you'll be robbing your future self of compound interest, making it much harder to retire comfortably.
Clear, specific goals (e.g., saving for a down payment, retirement) provide motivation to avoid debt. When you are focused on a positive financial target, you are less likely to derail your progress with unnecessary borrowing.