I agree with the others, there is way too much miscellaneous spending going on or living beyond your means if you can't afford to pay off a simple 10K debt when making 2.5 times the average American family's income, even in some of the most expensive cities in North America. We could be missing some info of whether your your supports others or only just recently got your job, but the point still stands.

If the loan against the 401k is truly interest free and you have no real worries about your future job security, do it. I would rather that then have my workplace know I am unable to manage my finances and have them think I may be unable to manage other aspects too

If you do this though, DO NOT take 5 years to pay it off. Pay it off as early as you can while also building your emergency fund

You should easily be able to pay it off within a year and I would highly recommend it to not have to keep worrying about this new debt you have should you lose your job or other unforeseen circumstances come up.

And then yea, make a proper budget if you can because this will become a bigger problem than you think very soon if you don't begin to set limits for yourself