Now that we are serious about knocking out the Credit Card debt (all $11,216 of it) we are faced with a really tight budget. I’m hoping it doesn’t come down to rationing toilet paper. It makes me sick to look at the interest we pay monthly on the credit cards, knowing that all those stupid purchases (and bad planning) over the years are why we are in this position now.

Saving extra money to throw at the credit card debt is good but is a slow slog and (in keeping with reason we are in this mess, the “I want it now!” mentality) ” I want this debt GONE NOW!”

I’m willing to do what it takes to get out of debt. But I don’t want to make stupid mistakes or miss smart opportunities. This got me thinking where is there “extra” money we can throw at this debt?  The 401k contributions?

Is it good idea to stop contributing to the 401k and use that money to pay off the debt faster?

This exact question was posed over at the Frugal Dad site.  The consensus seemed to be: If it will take more than 18-24 months to pay off your debt you should  contribute up until the employee match of your 401k.   Frugal Dad himself said, that is was a personal decision…

I already had lowered the contribution down to the company match last month to cover the Health Insurance Premium increase. I worry about retirement because as a SAHM I’m contributing nothing (monetarily).  No 401k, no Social Security, no pension – my husbands retirement contributions will have to cover two people. *sigh*

I’ve decided to leave it as is for now, everyone is allocated 5 squares a day…

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