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I am cuurently maxing out my 401k with 20% of my pay going to it. It seems like the foolish thing to do. The problem is I have 8k in credit card debt at a fixed 12.99% anual interest rate. I am slowly paying this down but was wondering if maybe I should reduce my contribution to my 401k to speed up paying off that nasty credit debt. Any thoughts would be greatly appreciated.
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Lizzardlic,

I would not throw away free money. I would atleast keep my 401k contribution at the level to give me whatever company match there might be. Beyond that its questionable. In your situation, which is very good comparitively (8k at 12.99% really is not as bad as it could be), lowering your contribution a little to pay off the 8K a little sooner is a very FOOLISH notion :).

good luck

Rob
Bottles
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I am cuurently maxing out my 401k with 20% of my pay going to it. It seems like the foolish thing to do. The problem is I have 8k in credit card debt at a fixed 12.99% anual interest rate. I am slowly paying this down but was wondering if maybe I should reduce my contribution to my 401k to speed up paying off that nasty credit debt. Any thoughts would be greatly appreciated.

Hi Lizard!

Is your 401K getting a company match? If so, you might consider putting in the maximum up to what gets matched, and temporarily putting the rest towards your credit debt. This would be one way to get it paid faster, and of course, guaranteeing you a return of 12.99% from the interest you wouldn't be paying.

I'd go that way, or consider looking for a teaser rate and switching to another card, paying as much as possible each month.

Good luck!

Tony
...but I still am...

Off2Aruba
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I would a least contribute towards my 401K what my company will match. How old are you? If you are very young, you could try applying say, 10% to your 401K and apply the additional towards your credit card debt, just make sure that you use the extra $ to pay off debt!

Also - try switching your balance around to a lower rate for the 6 months they offer! check out www. cardsmart.com - this shows credit card teaser offers - with low interest rates! And, cut up all but one card!!!

IMHO - Erika
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