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Old 08-19-2006, 12:59 PM
Fizgig Fizgig is offline
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Default Re: 401K before credit card debt? or other way around?

Let's say your company matches 50%. That's a 50% return.

Let's say your credit cards are freaky high at 24% or something. That's a 24% return for whatever you pay down.

50 > 24, so fund your 401k up to the match.

(I'm simplifying by not considering tax implications, but that's the general idea.)
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