No. of Recommendations: 0
If you are disciplined enough to do both tasks, and get them done in 12 months, I say start the 401(k) and debt repayment now.

impolite
hoping I don't get reamed for telling you this


impolite's advice is right on the money (no pun intended).

I think you'll benefit more from eliminating debt and saving for retirement at the same time. Since the timeframe to pay off the credit card is short either way, there's probably not much of an interest hit from doing both. Just remember to pay the CC each month after paying it off. (That comment's for my usage, too!)

A small emergency fund will help you from using credit for life's little emergencies, like auto repairs. Having to pay for emergencies with credit can stretch out your repayment plan indefinitely.

Makatak
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement