Re: 401K before credit card debt? or other way around?
We're paying off our CC and still contribute over the amout my company matches. I'm 30 and the more money we save now, the more it will be worth in 30-35 years. Time is our biggest asset right now and I'm not giving up compounding earnings. We'll have the CC paid off in less than 2 years and it's just not worth giving up the 401k contributions. Besides, our CC is at a 0% rate for the next 11 months anyway. Even if we took our contributions down to 0%, we'd only pay off the CC maybe 1 month earlier than we would if we kept up the contribution.
I'd run the numbers both ways. How much faster will you pay off your CC debt if you stop contributing all together? How much faster will you pay off your CC debt if you just drop your contribution to the company match? If the answer to either (or both) of these questions is "not much" then it's not worth stoping. If the answer is "by quite a bit" then drop the contribution. But make sure you start right back up again as soon as the debt is paid off, and contribute the absolute maximum amount you possibly can to help make up for lost time!
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