Help deciding on paying off loans or keeping cashola in bank...

[lovcom]

I do see what you mean. It's short-sighted to look at last year as anything but an anomaly and a great buying opportunity. If his 22k of debt was related to indiscriminate cc spending then yes this person should focus on debt elimination and financial strategies for the future. If this "fool" retires with a couple million in his account I'm sure he won't be concerned about the 20k he could have given to some bank that doesn't give a damn about him or his financial future.

In the Op's case I believe he would be better to fund his retirement(with a solid EF in place, of course). The market is rising and I think it will continue to do so. Waiting to fund your retirement years will only lead to having to put that much more into it down the road.

Not sure whart he has in mind for the "kid's cd's" but his children have a lifetime of earning potential ahead. It's great to want to help them but don't put so much towards it that you aren't able to take care of yourself and you eventually become a financial burden to them in your old age.

I got the sense the OP is not years away from paying down his consumer debt, and if this is the case, then killing it with as big as possible payments is worth not contributing for several months to a year. What is the most important thing for this father and husband is #1: emergency fund, #2: get the monthly nut down to as little as possible, then retirement comes next. One has to be mindful of possible job losses...at least most of us do...and a program that is not mindful of that, of the way things are in our world, God help them.

[amarowsky]

It seems like the best Case scenario would be the following.

1. Cash in as mush of the Kid's CD as possible to pay off that CC @ 14%. No way in hell that CD is giving you a higher APY than that 14%.

2. Greenbeck is absolutley right, you MUST continue that 401k, but just fund as much as the company is contributing, (i believe you said 50% matching up to 4%) That is basically 2% additional income (exempt of taxes). Your throwing away free money.

3. Depeding how concerned you actually are about your finances, you may consider selling that $17,000 car at almost 5% and buying a dependable used car for even half the price.

4. Use the rest of your disposable income to pay off the one car that is only 10,000 at the lower rate.

- After all that is done, you will have a LOT more disposable income. Then you can refund your children's college funds, and start aggressively funding your retirement, and also feeding your Emergency fund.

(NOTE: If your not able to cash in those CD's ((maturity reasons, gift reasons, other)) Then USE YOUR EMERGENCY FUND. It is ****in stupid to have cash sitting in your bank not earning anything, while your are paying a LOT more(%) on money you owe. If something happens you can easily put it on credit and then attack the payments on it, but emergencies such as car repair, house repair, medical expenses can all be paid on credit. Quit Screwing yourself by paying interest and wait until your debt free (not including mortgage or 10k car) to build your emergency and retirement funds.

[lovcom]

Um, because if he funded the Kid's CD then he should take the contributions and pay off debt NOW. Not wait till later.

If they were gifts from generous grandparents or aunts and uncles, EARMARKED for college, that's a different situation and STEALING.

But parent contributions? Seems to me like the parents in this case need the money to get a fresh start.

SO yes it makes a difference! I would take out all parents contributions from CD and pay off some consumer debt.

I would not stop retirement because screw it, behavior needs to change. And the best way is to cut your budget and live lean and pay off debt. NOT stopping retirement contributions and putting it to debt.

You have to LEARN to live without that retirement contribution money. It is GONE to savings. It's not meant to be a safety net.

Save 15% to retirement, and you'll always be used to living on 85% and making a budget work on 85%! Using 100% is stupid.

Yea, the parents get deep in debt, then expect the kids to bail them out....indian givers to be sure, and to do this is exceedingly immoral, and stealing, regardless if the contributions came from the parents or not.

Digging out on the backs of the little ones is immoral.