I need some Foolish opinions.I have $6000 in credit card debt. I need to choose a strategy for paying this debt off. (See below)Plan 1 Payoff credit cards in 8 monthsCost of $455 in interest.Contribute $2500 into 401k (months 8-12)Defer approximately $700 income tax.Plan 2Payoff credit cards in 12 monthsCost of $741 in interestContribute $7500 into 401kDefer approximately $2100 in income tax.To truely make a fair decision I believe you have to compare the two plans over an equal time frame. If this is the case then Plan 1 would have $2500 in my 401k after 12 months also.I guess the question comes down to this. Is it ALWAYS better to pay off your credit card debt COMPLETELY before you start investing?Thanks for your advice in advance,Fool On!
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