Credit & Money Management

SOLVED: Pay off Debt or Save?

How to prioritize your financial goals.

From Kiplinger's Personal Finance magazine, September 2006

It makes sense mathematically to put your cash where you'll get the best return.

Contribute money to your 401(k) to get the employer match, which guarantees you a 50% or 100% return. Next, pay off high-interest credit-card debt and earn 18% or more. But you'll feel better psychologically if you do a little of both. Plus, use some of your cash to build an emergency fund, even if you're earning just 4% to 5%.

For more information on building your strategy, see Save or Pay Down Debt?

RELATED LINKS
	Calculator: Pay off Debt or Save?
	Build Your Financial Foundation
	Lighten Your Debt Load
	Build Your Budget

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