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Author: LuluB Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 310470  
Subject: Re: 401K Date: 5/25/2001 10:05 AM
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The first is the interest rate of the credit cards. If it's above 20% I would definitely pay them off with the 401k.

I would not. I would BT those higher rate cards to a card offering 1.9% for lots of months instead.


Another factor to consider is whether the poster was planning on maxing out his 401k next year. If not then it's possible to make up the lost balance in the 401k

You can never really make it up. If all you want to do is get back to the 40K already there, sure. But what you miss is the compounding, etc. You miss what it could have been if you had just left it alone.

I also do not agree that if you have CC debt you should not have a 401K. I believe that EVERYONE should have a 401K, and if you are paying down debt, your contributions to the 401K should be limited to the company match (after all, that's free money).


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