Please don't say "both."
I know the "return" is probably greater for paying off the credit card, but if I wait to start saving for retirement, will I ever really start?
2007-04-30 09:15:11 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
If the IRA actually a 401k or 403b, where your employer is matching what you invest, you may have to invest the minimum necessary to get that match.
But otherwise, this one's pretty straightforward -- you must get out of debt. Cut up your cards and get your spending under control, if you haven't already done so -- you *must* live below your means if you wish to get out of debt. Consolidate your debt if you have an outrageous interest rate. Then pay that card off as aggressively as you can an never carry CC debt from one month to the next again.
There's a world of wealth waiting for you out there, but you first have to get on the plus side of the income/expense ledger.
Good luck to you,
Doug
2007-04-30 15:19:51 · answer #1 · answered by Doug M 4 · 0⤊ 0⤋
Pay off the credit card. If you increase what you owe the credit card company by not paying and that exceeds what you earn in the IRA, you are not saving for retirement anyway. You are just getting deeper into debt.
2007-04-30 09:23:05 · answer #2 · answered by djh 2 · 0⤊ 0⤋
Pay off the Credit Card. No use having that money in an IRA, when you're paying 18% on your credit card
2007-04-30 09:21:20 · answer #3 · answered by recruitme 1 · 2⤊ 0⤋
If the rate of return on your IRA is going to be at least twice the interest rate on your debt, go with the IRA, but that is VERY unlikely unless you have a very low rate on your credit card. Pay off debt first before investing.
2007-04-30 09:32:21 · answer #4 · answered by Double A 4 · 0⤊ 0⤋
Had a friend who had an IRA, lost her money when they made a bad investment with it.
Pay off the Credit Cards, and keep your credit score up.
2007-04-30 09:24:20 · answer #5 · answered by spiritwalker 6 · 1⤊ 0⤋
Pay off the credit card!
2007-04-30 09:22:35 · answer #6 · answered by trollunderthestairs 5 · 1⤊ 0⤋
pay off the credit card 1st then once the card is paid put the money you'd pay the card into an IRA
2007-04-30 09:22:06 · answer #7 · answered by Rainy 5 · 2⤊ 0⤋
Pay off your credit card!! Typically credit cards charge over 20% and sometimes close to 30%. You must get rid of this type of debt.
2007-04-30 10:22:17 · answer #8 · answered by Nelson_DeVon 7 · 0⤊ 0⤋