2006-12-30 09:59:24 · 8 answers · asked by Jessica S 1 in Business & Finance ➔ Personal Finance
Do both. Put a larger amount toward paying off the credit card so that you can eliminate the monthly service charges. When you pay off the credit card, switch the amount that you're paying on your credit card into a 401(k) contribution.
2006-12-30 10:02:34 · answer #1 · answered by upchurs 3 · 0⤊ 0⤋
The average return on a 401K is about 8-10%. Credit card debt is 13%. No brainer, pay off the debt.
2006-12-31 01:59:45 · answer #2 · answered by Steve R 6 · 0⤊ 0⤋
Pay off the debt and shred the cards. You are paying so much interest that you can save that interest and then use the money you would be paying the credit card company to invest.
2006-12-30 18:01:45 · answer #3 · answered by Kat 2 · 0⤊ 1⤋
Pay off credit card..13% is a lot of money, then take that money and put it in your 401k. Use a credit card only if you can pay it off the next month, or for an out and out dire emergency..
2006-12-30 18:10:55 · answer #4 · answered by jst4pat 6 · 0⤊ 0⤋
If you really do have to choose I suggest paying off the debt first. You can not earn a guaranteed 13% in your 401(k).
2006-12-30 18:01:49 · answer #5 · answered by frugernity 6 · 0⤊ 1⤋
pay off credit debt no question you'll pay 13% and only make about 5% in the market that's a 8% loss on your money.
2006-12-30 18:01:50 · answer #6 · answered by setter505 5 · 0⤊ 1⤋
You should apply for a lower interest rate card, while paying down the debt.
2006-12-31 03:21:33 · answer #7 · answered by J. C. 6 · 0⤊ 0⤋
Franky you need to do both if you can afford to do so!
:-)~
2006-12-30 18:01:18 · answer #8 · answered by Anonymous · 0⤊ 0⤋