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Should I invest just enough in my 401k to get the match even if I have credit card debt?

I would be able to pay off my debt faster if I focused on just that, but it seems like a shame to leave several thousand dollars on the table every year.

Jan 06, 2012 by Mel from Cambridge, MA in  |  Flag
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Barry Rabinowitz Level 19

hi: Most employers match employee contributions up to a stated %, usually maxed out at 6%. Assuming you Do not pay the default rate, your credit card interest rate is probably 15-20%. I do not know of any investments that can safely earn that rate of return. Pay off your credit card debt-that is like you have earned 15-20% on your money. Also by only making a minimum payment your bill may take many years to pay off.

Comment   |  Flag   |  Jan 07, 2012 from Fort Lauderdale, FL

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