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Should I pay off my credit card debt and student loan debt, or contribute the maximum amount to an HSA and Roth IRA, and contribute 10% to my 401(k)?

I currently have $3,000 in credit card debt and $12,000 in student loan debt. I am making three times the minimum monthly payment on both. I am currently contributing the maximum amount to an HSA and a Roth IRA, and 10% of my income to my 401(k) account. I would consider contributing less to my 401(k) account, but my company offers profit sharing (instead of matching our contributions) up to $5,000 invested. I’m trying to reach that amount but I may have to contribute more towards the end of the year to reach it. I work two part time jobs and all of that income goes to paying off my credit card debt. Should I lower my contributions to my 401(k), HSA and Roth IRA so I can pay off my debt quicker, or continue with my current strategy? If I continue what I'm doing now, I will have all of my credit cards paid off by the end of the year.

Debt, Investing, 401(k), IRAs, Stocks
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April 2018

You will get many good answers that cover the entirety of your question, so I will offer one piece of targeted advice.

Credit card debt is very expensive.  I will assume you are being charged 20% interest, or nearly that amount.  So stop paying more than required on your student loans and focus on eliminating the credit card debt first.  Don't stop the 401K contributions -- in fact, I applaud your desire to stretch and work extra in order to max out what you get from the profit sharing -- so if you have a shortfall you should cut back on the Roth contributions first.

I hope that by doing this you will eliminate the credit card debt sooner.  Than, make yourself a promise NEVER to let a month go by without paying off that card in full.  Never incur an interest charge again.  Ever.

April 2018
April 2018
April 2018