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Originally Posted by more freedom
Say your credit card int rate is higher than the rate of your investment, then it makes more sense to pay out your credit card debt first.
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That part is sound advice, when talking about some low interest savings account. However,
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Originally Posted by more freedom
That depends on your rate of return from your 401K and the internet rate of your credit card.
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The penalties and lost opportunity cost of cashing out a 401k are likely far worse than the interest. And if it came to bankruptcy, the 401k would be exempt.