>>I fail to see how paying myself less interest than i'm giving BOA and CITI is a bad idea.<<
Because there are several things you aren't considering.
--First off, you are losing the potential growth of the money you are borrowing. With the economy the way it is right now, you'd be taking money out of an investment at exactly the wrong time.
--Secondly, if you lose your job, the loan is due in full within 60 days. If you can not pay it back within that time, you will be taxed and penalized on that money. That is going to cost your more than the interest on your credit card
--Lastly, if you can afford to pay back the loan, you should take that money and pay it on the credit card balance. The loan payment is likely to be more than the credit card minimum payment. Pay that full amount on the credit card debt, and you'll pay the credit card off faster than you would have paid the loan back.
Here's the thing you need to look at. If you are paying 22% on your credit card, and you can borrow the money from your 401(k) at 5%, that seems like a good deal. But if the loan takes you 5 years to pay back, and the credit card could have been paid off in a year, you aren't really saving any interest.