Basically, what I'm wondering is should you be "basically debt free" of no colateral debt before doing long term investments?
2006-09-21 11:55:51 · 7 answers · asked by christopher d 1 in Education & Reference ➔ Other - Education
A 401k is for the long term, but get started now. Put in as much as you can comfortably get by with, especially if your employer matches the funds to a certain amount -- that's free money!
The cut back on expenses considerably and pay off each card. Start w/the lowest balance and get it paid off. Then the next one, and so on.
After your cards are paid off, then you can sock more $ in the 401k and watch that sucker grow.
Good luck!
2006-09-21 12:07:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
At a minimum open a high yield savings account (like ING) and pay more than the minimum to the credit cards. You want to reduce the high interest balances as quickly as you can and begin saving a small amount. You will be surprised how quickly even a little bit of savings can grow. 401k's are great, especially if the company has matching contributions, but remember that you cannot touch that money. You need some source that you can tap for emergencies (hence the opening statement) so that you don't have to pay by credit.
2006-09-21 12:06:19 · answer #2 · answered by smgray99 7 · 0⤊ 0⤋
If you don't have a 401k open that first. You can contribute a low percent and then worry about the cards after. Trust me you have to pay yourself first or you never will. And seeing how you are probably a ways away from retiring that money will grow tremendously.
2006-09-21 12:00:54 · answer #3 · answered by neon49 3 · 0⤊ 0⤋
It is a matter of preference, if you are comfortable with your debt then put the money in a 401K, but if having the debt bothers you or causes turmoil in a relationship pay it off.
2006-09-21 12:04:33 · answer #4 · answered by Billy 4 · 0⤊ 0⤋
Contribute the least amount required to get company matching contributions, then use the rest of your disposable income to pay your debt down. And stop using your credit cards. Cut up all but one for emergencies.
2006-09-21 12:53:28 · answer #5 · answered by ginger 6 · 0⤊ 0⤋
look at it this way, if your credit card charges 18% and your 401K yields 12%, you're losing over 6% annually by not paying off your credit card first.
hope this helps!
pe@ce
2006-09-21 12:03:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋
pay the cards first----a no-brainer
2006-09-21 11:57:22 · answer #7 · answered by alanc_59 5 · 0⤊ 0⤋