No. of Recommendations: 0
One thing not mentioned here is a home equity loan or line of credit. You should be able to reduce the rate on the 9% loan plus take a deduction on the interest if you itemize. I estimate that you currently pay $52 per month ($7000 x 9% / 12) per month on this loan so you should be able to afford some closing costs. Depending on the rate, you may want to roll in the 4% balance.

I'm inclined to keep funding the 401k & 403b accounts. You mention putting $26k into these accounts which, at 30% tax rate, saves you $7800 per year. Take the tax savings alone and you have the first CC paid off in one year.

Another way to look at it: if you can pay $1000 off per month, you will have the $7000 balance paid off in around 8 months and pay ~$200 in interest which, to me, isn't a huge deal either way. Whatever decision you make isn't likely to increase or decrease that number by a large amount, even with a 20% swing in the market either way. I would stay on your current plan.

Bottom line, you have good instincts and you seem to have control of the situation. For that, you should be commended.

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