SOLVED: Pay off Debt or Save?

Getting Out of Debt

SOLVED: Pay off Debt or Save?

How to prioritize your financial goals.

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?


Calculator: Pay off Debt or Save?

Build Your Financial Foundation

Lighten Your Debt Load

Build Your Budget

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