Not sure where to go from here - Roth & 401k/Paying debt, etc??

[jIM_Ohio]

i don't think the poster was saying she has $800 per month that's not going to debt or the EF

i think the post was saying that if the EF was used to pay off the debt $800 per month would be freed up (i.e. not being paid towards the debt anymore) and could be used to replenish the EF.

check OP- she pays $160 on cc right now

[tinapbeana]

then i'm guessing the $800 comes from this statement in the OP

"I have begun saving in an ING emergency fund at $600/month and its currently at $4100. I also have separate accounts for Vacations ($100/mo), Misc purchase ($75/mo), and Christmas ($65/mo). "

600 (EF) + 100 (vacations) + 75 (Misc) + 65 (Christmas) = 840 per month

so again the 800 per month is currently being utilized, it's not that the poster is trhowing down the proverbial drain.

to the OP, i would point out that if you paid off the CC debt in full, you could take the current 840 per month + the 160 per month that you're paying towards your CC debt for a cool grand per month, in 4 months the EF would be back up to par and you could resume saving for vacation/gifts/etc. would 4 months of hardcore saving be all too bad?

[creditcardfree]

Good job increasing your retirement savings!!

As far as paying off debt with your emergency fund...that is a personal decision. You need to think about what amount you would be comfortable with while you pay down debt.

If you don't pull any out, you should definitely stop adding to the EF for the time being and put all your focus on paying down the debt. $4k is better than a lot of people have for an EF. If you stop the other misc savings, too and add in your current loan payment...and I calculated it right you have $1000 a month...credit card free in 4 months!!

Then take the next 4-6 months to build your EF to $8000-$10000. By the end of the year you have a nice EF, no credit card debt. By the next year you could even have paid off those student loans. By the end of year three you would have a nice downpayment on a house!!

Just make a plan and stick to it. Good luck.

[BCHGRL]

Hey,
We've all been there. Spend your twenties learning what not to do for the rest of your life. I almost think that it is a good thing for someone as stubborn as I am to have a little unwanted debt in your twenties so you know you never want to be in that situation again.

Anyways, like everything in life, you have to find a balance. Saving is great, but if you have higher cc interest than savings earnings, then you are not maybe not making the best choice. At the same time, earning interest may not be a factor to building a comfortable EF so when those emergencies come along you are not charging again on the credit card.

I am 28 and proud to say that other than one car payment and a house payment the hubby and I are debt free. We don't have fancy clothes or cars or even house. We rent out a bedroom in our home to my brother-in-law. To look at us, you'd have no idea that we make 6 figures. You'll get there, just keep doing what you are doing. Be happy with who you are and find simple things to enjoy, and you'll get there.

[Tree0164]

I agree with creditcard free. You need to build up your emergency fund and fully fund your roth ira each year. I also would get rid of that credit card debt before next March.

I agree with Ima saver

Pay off the credit cards with the $3k and then use your EF contributions to pay it completely off.

I would then max out your ROTH IRA and see how much you can afford to put in the 401K.

My 20s were pretty messed with credit card as well. I have been credit card debt free since a few years now and it feels pretty good!!