Why are you contributing to a 401K but have significant debt payments? See Dave Ramesy for a start, then Bogleheads as you climb out of debt and start to save and invest. Best of luck.
>Why are you contributing to a 401K but have significant debt payments? See Dave Ramesy for a start, then Bogleheads as you climb out of debt and start to save and invest.
I have a different philosophy on this. A 401k is basically your life raft of last resort. And it's so tax advantaged that you're throwing away money not to use it. I'd rather pay to hold debt while maintaining and growing my assets, and rely on inflation + asset growth + wage growth chipping away at the debt. If the economy crashes and credit freezes up, a good credit score from paying down my debt won't mean anything. But a bank balance still will.
