Brown Cafe Financial Advisors

olroadbeech

Happy Verified UPSer
how much is debt? what is interest rate?
I think I'd pay off CC debt as quickly as possible and then cut up cards until your finances can stabilize.
 

Pizza

Joe Biden is The Big Guy
6.5% and $10000.

401k is at 40% or around $8000 a year. I am part time.
With my other job I make enough to pay down the debt just have not been disciplined.

With the market as high as it is just thinking putting some more toward the credit debt is the way to go.
 

zubenelgenubi

Living for Lunch Break
Pay off credit card debt or keep 401k at max?

Dave Ramsey would say pay off the debt then maximize retirement investment. Other people say if you can make more in the market than the interest you are paying, then you should keep investing.

I agree with Dave because the more debt, the higher the risk. You never know when something might interrupt your income, then you end up owing late payment penalties on top of interest. Better to just pay it off as quick as possible.
 

olroadbeech

Happy Verified UPSer
Maybe.
Some of it comes from paying off an auto loan so I could have only liability on an older vehicle. I have no other debt except small mortgage and boat.
6.5% credit card interest is pretty low but I abhor debt so always pay off asap. it will give you peace of mind then you can maximize your retirement accounts. we did that plus paid off house in 17 years instead of 30 and becasue of that was able to retire 4 years earlier at 58 instead of 62.
it was worth it.
 

UpstateNYUPSer(Ret)

Well-Known Member
With my other job I make enough to pay down the debt just have not been disciplined.

Don't touch the 401k.

Make it your first New Year's resolution to use the income from you "other job" to pay down this debt. You might want to look in to a credit card with a short term 0% transfer offer and then focus on paying it off.
 

zubenelgenubi

Living for Lunch Break
Don't touch the 401k.

Make it your first New Year's resolution to use the income from you "other job" to pay down this debt. You might want to look in to a credit card with a short term 0% transfer offer and then focus on paying it off.

He can cut his contributions to the 401k back a lot without really hurting his long term outlook. He should pay off everything but the mortgage before returning 401k contributions to max.
 

UpstateNYUPSer(Ret)

Well-Known Member
He can cut his contributions to the 401k back a lot without really hurting his long term outlook. He should pay off everything but the mortgage before returning 401k contributions to max.

I would agree with you if he hadn't said that he could easily pay down the debt with the income from his other job.
 

olroadbeech

Happy Verified UPSer
He can cut his contributions to the 401k back a lot without really hurting his long term outlook. He should pay off everything but the mortgage before returning 401k contributions to max.
Dave Ramsey's books are worth the read if you want to tackle debt. My parents were using these methods a long time ago before he wrote about them. Tried and true , a lot of folks who grew up during the 30's depression learned to hate debt and be frugal.

A person in debt becomes a slave to the master.
 
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