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<To add two more cents to the pot, I would only contribute up to the maximum of the employer match. You'll never get a second shot at this "free money". Then I would defer all other cash to paying off the debt. After that debt is gone, THEN I would max out the 401K *and* an IRA.>

<Note: Some debt is acceptable, like mortgages. I also might not view student loans with too harsh an eye.>

Perhaps I should quantify. My total debt is equal to about 75% of my annual salary. One third of that is in the form of an auto loan, while the other two thirds is in the form of evil credit cards. The weighted interest rate is about 14%. Needless to say, I become rather depressed when I dwell on how much I pay each much in finance charges.

My employer matches .25 to 1 for the first 6% of my salary, with a 25/50/75/100 vesting period. I was planning on contributing the 6% to get the "free" cash, then plowing every penny left over into my various obligations (before I get used to the increased income). After I pay off all my debt (target 2 - 2.5 years), I was going to evaluate my financial position and determine at that time what to do.

Does this reasoning have at least some logic to it?

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