Should I aggressively pay off HELOC?

[slofizz]

Even with the heloc, I conservatively still have $50K in equity in my house. I am currently paying %2.99 on this loan. I have no other debts other than my Mortgage ($129K).

I currently have at least 1 month of emergency cash reserves and I am putting %7 of my paycheck to a 401K.

Should I get to 6 months emergency cash first and put everything on hold ( decrease 401K contributions to %3 ). Or go all out and pay my heloc off ($60K).

[JoshuaHeckathorn]

I would build my EF up to at least 6 months and max out retirement savings vehicles before paying down the HELOC.

[jpg7n16]

Originally Posted by JoshuaHeckathorn

I would build my EF up to at most 6 months and max out retirement savings vehicles before paying down the HELOC.

Agreed, but see my slight edit. Don't get more than 6 months in cash.

2.99% deductible mortgage is super cheap. Should be relatively easy to earn more than that long-term.

[krantcents]

In addition to building up you emergency fund, I would increase your 401K contributions.

[disneysteve]

I agree with not prepaying that loan. At that rate, you'll do much better investing for the long term.

[artwest]

I would build up the EF to at least 3 months expenses. Increase your 401k to at least 10%.
Then attack the HELOC. Cut your budget, have a rummage sell and find ways to get cash to pay it off more quickly.

One thing you may look at is life insurance. If you have a whole life policy, get term life and THEN cash in your whole life policy and apply that to either your EF or HELOC.